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The minutes of this month's MPC meeting, published on July 22nd, stressed that it is the stock rather than the flow of purchases that determines the monetary stimulus.
The minutes said, "A number of participants expressed willingness to adjust the flow of purchases downward as early as the June meeting if the economic information received by that time showed evidence of sufficiently strong and sustained growth".
I was puzzled by this view coming from Gross; pretty basic macro told us that to the extent that quantitative easing matters at all, it's the stock of Fed holdings, not the flow of purchases, that matters.
"Communications from Fed leadership cast some doubt on the appetite of the key policy makers for increasing the monthly flow of purchases," Michael Feroli, chief United States economist at JPMorgan Chase, wrote in an analysis of the coming meeting of the Federal Open Market Committee.
"A number of participants expressed willingness to adjust the flow of purchases downward as early as the June meeting if the economic information received by that time showed evidence of sufficiently strong and sustained growth," the minutes said.
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Overall, survey results indicated that there was a flow of food purchases over the month; all households purchased groceries, primarily at supermarkets or supercenters, on at least four occasions prior to the five in-home assessments of food availability.
The two-story shop often smells of frankincense and myrrh and maintains a steady flow of patrons purchasing everything from imported cowrie necklaces to books by Queen Afua.
That's what we're really trying to prove with the large, consistent flow of orders and purchases," she adds.
4) The flow of Fed bond purchases may slow or end, but there is a huge outstanding stock of holdings sitting on the Fed's books, which will very probably never be sold back to the market.
"Mexico has had very stringent gun-control laws in place for many years, and have reinforced their application as a result of the flow of weapons illicitly purchased in the U.S. and then trafficked into Mexico and into the hands of transnational criminal organizations," he wrote.
First, where traditional investors have sought to hold onto assets for 3-to-7 years, last year saw the arrival of a "new breed" of short-term investor with a two-year exit strategy (hotel flippers, in essence, says JLL's Paider), "resulting in a dramatic impact on the transaction market by furnishing a constant flow of assets" for purchase.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com