Debt Death Spirals, Fed's Losses, & Fiscal Theory Of Price Level | Peter Stella & Joseph Wang

Peter Stella, Former Head of the IMF Central Banking Division, joins Joseph Wang, former senior trader for the New York Fed and author at Fedguy.com, and Jack Farley for a wide-ranging discussion on:

-what really causes inflation
-monetarism, fiscal theory of the price level, and modern monetary theory (MMT)
-the unrealized losses on the Fed’s balance sheet
-why yield curve control likely won’t be necessary (or so Peter argues)
-the longer the duration of a governments’ debt, the less inflation is required to inflate it away
-when a central bank incurs unrealized losses, who “wins” and who “loses”?

Filmed on March 29, 2023.
____
Follow Joseph Wang on Twitter https://twitter.com/FedGuy12
Joseph Wang’s writings: https://fedguy.com/
Joseph’s latest piece, “Ameridollars”: https://fedguy.com/ameridollars/
Peter Stella on Twitter: https://twitter.com/Stellar_Consult
Peter Stella’s work: https://www.centralbankarchaeology.com/
“Do Central Banks Need Capital?” by Peter Stella:
https://www.imf.org/en/Publications/W...

Follow Jack Farley on Twitter https://twitter.com/JackFarley96
Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance
Follow Blockworks on Twitter https://twitter.com/Blockworks_
____
Use code GUIDANCE10 to get 10% off Permissionless 2023 in Austin:
https://blockworks.co/event/permissio...

Research, news, data, governance and models – now, all in one place. As a listener of Forward Guidance, you can use code GUIDANCE10 for a 10% discount when signing up to Blockworks Research https://www.blockworksresearch.com/
____
Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter:
https://rb.gy/5weeyw

Market commentary, charts, degen trade ideas, governance updates, token performance, can’t-miss-tweets and more. Subscribe to the Blockworks Research “Daily Debrief” Newsletter: https://rb.gy/feusos
____
Timestamps:

00:00 Intro
00:15 Peter Stella's Background At The International Monetary Fund (IMF)
03:55 Joseph Wang On The Flaws Of Monetarism
05:52 Milton Friedman: It's The Government That Prints Money
07:56 The Fiscal Theory Of The Price Level
13:38 Modern Monetary Theory (MMT)
24:12 Real Value Of U.S. Debt Is Lower Now Than March 2020
37:33 Permissionless
38:38 The Fed Has Huge Unrealized Losses On Its Balance Sheet
45:29 Details About The Fed's Mortgage-Backed Securities (MBS) Purchases In 2020
51:51 Did The Fed Help Wealthy Homeowners Refinance Their Mortgages In 2020?
54:21 Blockworks Research Plug
55:22 When The Federal Reserve Has Unrealied Losses On Its Balance Sheets, Who Loses and Who Gains?
01:13:50 Joseph Wang's Summary Of This Conversation
01:15:08 Yield Curve Control and Potential Debt Death Spiral
____
Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.