The Grumpy Economist

I acquired an annual report from a money market fund not too long ago. It features a Q-and-A with two portfolio managers: Joanne M. Driscoll and Jonathan M. Topper.

The commodity story, in my opinion, is proscribed in how a lot it could clarify since commodity prices have gone up and down since 2008. Moreover, as Jim Hamilton and Ben Bernanke argue , just below half of the commodity worth decline since mid-2014 may be attributed to weak global demand. Weak commodity costs, in other words, are themselves partly the result of anemic demand.

The IILM seeks to facilitate cross-border liquidity management among establishments offering Islamic monetary companies by making out there a variety of Shari’ah-compliant devices, on business phrases, to swimsuit the varying liquidity needs of these establishments. The IILM seeks to foster regional and worldwide co-operation to build a strong liquidity management infrastructure at national, regional and worldwide levels.

It was totally different in two key methods. First, aggregate demand progress was kept below its pre-disaster trend development charge. For the reason that restoration started in 2009Q3, NGDP growth has averaged three.3 percent. That is effectively beneath the 5.four p.c of 1990-2007 interval (blue line in the figure under) or a 5.7 percent for the entire Great Moderation interval of 1985-2007. Any method you slice it, macroeconomic coverage has dialed back the development development of nominal spending. This may be seen within the determine under.

A Scheme of MMMFs was introduced by RBI in 1992. The objective was to offer an additional short-time period avenue to individual investors. In November 1995 RBI made the scheme more versatile. The present tips permit banks, public monetary institutions and likewise non-public sector establishments to arrange MMMFs. A money market mutual fund’s portfolio is comprised of quick-term (lower than one 12 months) securities representing excessive-quality, liquid debt and financial devices. Investors can buy shares of money market funds through mutual funds, brokerage corporations and banks.