Triffin's suggested solution was to create an artificial reserve asset, tied to a basket of commodities.
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All central banks around the world held U.S. Treasury bonds as their reserve asset.
Prior to the recessionary period, central banks reserve asset managers have refocused their strategies.
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In other words, they had U.S. dollars (actually Treasury bonds) as the reserve asset, not gold bullion.
Rather than try to create a global reserve asset, reformers might achieve more by reducing the demand for reserves.
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Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF and SDRs were born.
Since 1700, and indeed earlier, banks operating a gold standard system have generally held some form of debt as a reserve asset.
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Only if the IMF evolved into a global central bank able to issue them at speed could SDRs truly become a central reserve asset.
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Since the EU crisis with Greece, gold has regained its identity as a reserve asset by central banks, while the euro looks like a doomed currency.
No, in the opinion of THE CONTRARIAN TAKE , Federal Reserve asset monetization programs, like QE II, will remain of primary import for the foreseeable future.
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Since he avoids use of U.S. government debt as a reserve asset for foreign governments, Lehrman proposes the use of gold bullion alone in this role.
Under this structure from 1879 to 1913, gold served as both the primary reserve asset for central banks and the means of settling international payments deficits.
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But in 1969, as the strains between America's budget deficit and the dollar's gold peg emerged, an artificial reserve asset was created: the Special Drawing Right (SDR), run by the IMF.
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And then I have a real skepticism about the Federal Reserve even considering asset prices.
What if the Federal Reserve ends its asset purchase program in June, beginning the so-called normalization of monetary policy?
It is also creating a facility, supported by the Federal Reserve, for asset-backed securities which could relieve banks of bad loans.
Net interest margin declined to 3.66%, a reflection of the low interest rate environment being orchestrated by the Federal Reserve thanks to its asset purchase programs over the past several years aimed at greasing the skids for an economic recovery.
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Foaming asset prices are reviving the debate about whether the Federal Reserve should raise interest rates to cool down asset-price inflation.
On November 25, 2008, the Federal Reserve Board announced terms for the Term Asset-Backed Securities Loan Facility (TALF).
Along with economic stabilization and the recovery in corporate profits, efforts by the Federal Reserve and other central banks to boost asset prices have also juiced stocks' rally.
Although these sets of tools differ in important respects, they have one aspect in common: They all make use of the asset side of the Federal Reserve's balance sheet.
Maki adds that he believes that the report, together with other recent data, will convince the Federal Reserve to refrain from launching a new asset purchase program at this month's meeting.
There have been some worries among hard-asset investors about when the Federal Reserve might begin to peel back its ultra-loose monetary policy.
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In any case, this thought applied to any reasonably constructed index of asset prices reveals that the Federal Reserve is barely on the easy side of neutral, and the European Central Bank has Europe in a death grip.
By providing liquidity to issuers of consumer asset backed paper, the Federal Reserve facility will enable a broad range of institutions to step up their lending, enabling borrowers to have access to lower cost consumer finance and small business loans.
Earlier in the day, the release of the FOMC statement revealed that the Federal Reserve decided to embark on a third round of asset purchases, dubbed QE3.
Next week brings the May nonfarm payrolls report, which many market watchers will use as a divining rod to ascertain whether the Federal Reserve and Ben Bernanke could actually start tapering their asset purchases before the summer is out, perhaps as early as late June.
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Meanwhile, with worldwide implications, Basel III, supported by the Federal Reserve and the FDIC, moves gold to a Tier I asset.
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Last week, John Williams, president of the Federal Reserve Bank of San Francisco, suggested the Fed's asset purchases should stop by year-end.
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