December 2, 2020

Important Data about monetary policy

Gold Prices ($/Ounce) 1800-1972

Gold Prices ($/Ounce) 1970-2019

Gold Prices ($/Ounce) 1970-2019

Nixon Address, August 15, 1971

End of Bretton Woods

  • The end of Bretton Woods between 1971 and 1973 \(=\) start of fiat money.

  • Inflation targeting vs. exchange-rate targeting (and even better: Gold standard)

  • Now central banks have a target for inflation. Sometimes also have a “full employment” mandate, but targeting inflation is usually their most important task.

  • Of course the dynamics of inflation has considerably changed since.

U.S. Price Level 1920-2019

U.S. Price Level 1920-2019 (Log Scale)

U.S. Fed Funds Rate / Discount Rate (1914-2019)

Fed Chairmen / Chairwomen

Fears of hyperinflation

German Hyperinflation: Price Index

German Hyperinflation: Exchange Rates

German Hyperinflation in the 1920s

German Hyperinflation in the 1920s

Expenditure Shares (1912 - 1923)

Other Hyperinflations

Housing and Monetary Policy: 2000-2015

Low Federal Funds Rates

Fed VS ECB

Trichet rate increase

Hong Kong and Fed

Delinquency Rates on Mortgages: Prime, Subprime, Adjustable, Fixed

U.S. Real House Prices (1990-2013). Source: Shiller

Current Monetary Policy Issues

QE: Long Term Refinancing Operations

QE: Long Term Refinancing Operations

Bitcoin

Central bankers have become dominant holders of gvnt’ bonds

Bibliography