Monetary Mechanics

Maroon Macro
My original proprietary macro research covering the monetary system's influence on the global economy.
Created 18 Jun 2021
  • Issue #30: Monetary Policies, Primary Dealers, Banks, and Reserves
    15 Nov 2021 • 2 min read • 3 1
    In this issue of Monetary Mechanics, I am going to talk about something that has been personally perplexing since I started learning about the plumbing of the modern financial system, as well as the i...
  • Issue #29: US Dollar Demand and Uses
    09 Nov 2021 • 6 min read • 5 1
    There are several significant categories of international currency use: Official sector FX reserves Cross-border bank liabilities International debt securities OTC FX transactions (e.g. forwards and s...
  • Issue #28: The Origins and Evolution of the Modern Monetary System
    05 Nov 2021 • 4 min read • 5 0
    Recall that there are a few fundamental innovations that have radically transformed our monetary and banking system in the post-WWII era: Liability Management (a.k.a. “wholesale finance”) – the expans...
  • Issue #27: Deeper Dive into Decentralized Finance (DeFi)
    01 Nov 2021 • 5 min read • 4 1
    Recently, I authored my first issue about decentralized finance, Issue #23, in which I dipped my toes into what decentralized finance (DeFi) is and what it might mean for traditional financial markets...
  • Issue #26: Post-GFC Financial Legislations and Regulations
    25 Oct 2021 • 1 min read • 3 0
    In this issue of Monetary Mechanics, I am going to cover some of the most important post-GFC financial legislations and regulations that have been implemented over the past decade. I will undoubtedly ...
  • Issue #25: The US Repo Market
    18 Oct 2021 • < 1 min read • 4 4
    In this issue of Monetary Mechanics, I am going to cover all the different facets of the US repo market, beginning with the nuanced division between the tri-party and bilateral repo markets, as well a...
  • Issue #24: Supply Chain Issues, Energy Shortages, and Commodities
    11 Oct 2021 • 1 min read • 2 0
    Supply Chain Issues The COVID-19 pandemic has no doubt disrupted global supply chains to a significant degree. Given the physical nature of supply chain and logistics business models, they are unable ...
  • Issue #23: The Bull Case for Decentralized Finance (DeFi)
    08 Oct 2021 • 8 min read • 6 4
    This issue of Monetary Mechanics is going to be a bit different. While I am most assuredly not an expert on cryptocurrency or decentralized finance (DeFi) by any means, I have become cautiously optimi...
  • Issue #22: Is Quantitative Easing Inflationary?
    01 Oct 2021 • < 1 min read • 2 0
    Since it appears as if the tapering of asset purchases by the Federal Reserve is a foregone conclusion, bound to happen sooner rather than later, I will use this issue of Monetary Mechanics to talk ab...
  • Issue #21: Trade Idea – Short CNH
    27 Sep 2021 • 13 min read • 2 5
    In this issue of Monetary Mechanics, I am going to formally outline a trade idea that I have been thinking about for the past few months since the recent reflationary impulse has stopped dead in its t...
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