Friday, March 3, 2017

Not really

Are the Effects of Monetary Policy Asymmetric

The Richmond Fed wants to know.

As part of the 'easing' the Fed lets the queues get longer at the  curve.  The distribution of queue size becomes symmetric. You can see it in the two Poisson distributions. I think the queue goes symmetric as flow  (multiplier) goes low. The smaller the queue the sharper is our feeling of deja vu.

It will take a few hundred years to work the queue back down, so expect a helicopter.

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