Episode Details

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.

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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/WP/Issues/2016/12/30/Do-Central-Banks-Need-Capital-2260

Follow Jack Farley on Twitter https://twitter.com/JackFarley96

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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 Mone