Do you have any ZIRP recommendations?
Added 2025-04-18 14:51:01 +0000 UTCI’m writing a new report and looking for any book/essay/film/TV recommendations you have about Zero Interest Rate Policy? 👀
Comments
You can’t write anything about monetary policy without knowing about modern monetary theory! This is the MMT approach to interest rates https://billmitchell.org/blog/?p=4656
Reece Gittins
2025-05-01 09:37:03 +0000 UTCI see there's already a mention of Margins. Seconding that. Most famous (+ facetious) is the pizza arbitrage article. But there a bunch of other related ones https://www.readmargins.com/p/doordash-and-pizza-arbitrage?utm_campaign=post&utm_medium=web
harry manion
2025-04-23 23:01:39 +0000 UTCI typed out a screed, but to save you time I'm putting my recommendation at the top here: Foundations of Financial Markets and Institutions, Part IV: Determinants of Asset Prices and Interest Rates (4 chapters) by Fabozzi, Modigliani, and Jones. You'll learn about the yield curve, the most active commodity market in the world, DCF asset valuation and the Capital Asset Pricing Model (CAPM). If you grasp this, it's not too hard to get into excel and QUANTITATIVELY demonstrate how LIRP/ZIRP undermine companies that Make Shit Now™ (big 3 auto, etc) and give society's resources to companies that Promise The Future™ (tesla, FAANG, wework, theranos, etc). The gist of that analysis is that the cash flows a company is expected to make 20-80 years in the future become a relatively much larger fraction of their valuation than what they are expected to earn in the next 20 years. So a good science fiction writer that knows a little bit about pro-forma accounting can get resources more easily than a company that makes food, clothing, basically anything tangible. The market[2] would never allow the crazy Promise The Future™ shit the FOMC has. Central planning kneecapped the commies and now we're making the same mistake because GOD FORBID boomer 401Ks dip for a few years. This is a subject that I think about a lot. I studied finance for undergrad* and I find it maddening that so few people criticize LIRP and ZIRP. The people who understand finance well enough to connect FOMC policy to [list of major problems and inexplicable bullshit in western society][1] tend to own assets and benefited, so they have no reason to question it. The people who don't own assets almost never study actual financial theory and just broadly blame capitalism. I have more than one friend who has read Piketty and Graeber but has never heard of DCF or NPV. [0] I went to a non-target and got shitty grades, full disclosure. Hopefully if you think I'm insane, the implicit comedic value made this comment worth your time. [1] 'steep' Lorenz curve curvature (erasure of the middle class), billionaire wealth, 23 year old programmers getting paid more than doctors to make stuff that never gets released, super-inflation of milestone life purchases, the Crypto boom, GME, 'weird' things like hourly city parking > EMT hourly wages, JUICERO, and so on. [2] depending on how froggy you want to get, analyzing the history of treasury auctions and trying to show what rates would have been without CENTRAL FUCKING PLANNING would be pretty cool. [Bonus] CPE and PCE are a fucking joke. Can't afford a car? Who cares, bing-bing-wahoo machines in your pocket are more affordable than ever! Also CarPlay and Touchscreens are improvements that totally explain why increase in care prices should be 'hedonistically adjusted' out of official inflation numbers. TL;DR LIRP is a goldmine of how it all went wrong and you could get more than one report out of this. I remember my (Indian) investment analysis prof in 2010 absolutely RANTING through his thick accent about how Quantitative Easing was going to ruin the world. Guy would smoke furiously before class, during the break, and after class. We were all hungover and could barely follow wtf 'bootstrapping' was and just thought he was a crazy right-winger who hated the government. Can't remember his name but it was probably Cassandra. EDIT: also stay away from the jekyll island book or the one about enslavement of the human race, those are conspiracy drivel
Sean Murray
2025-04-20 15:19:09 +0000 UTChttps://open.substack.com/pub/themargins/p/zirp-explains-the-world?r=5m5bd&utm_medium=ios
Vessel
2025-04-18 19:14:59 +0000 UTCCouple of essays I wrote last year and the year prior that are related to ZIRP: https://wtflolwhy.ghost.io/wga-sag-aftra-and-the-zero-interest-rate-fantastic-voyage/ https://wtflolwhy.ghost.io/what-the-happened-to-spotify/
Zachary Jaffe
2025-04-18 16:45:45 +0000 UTC“the zero interest rate policy in the overlapping generations model. (In Chinese. With English summary.)” Chi-Ting Chin and Chih-Wen Hsueh. (Source: Taiwan Economic Forecast and Policy Published October 2019) You can dm me on @/R0b0t1ck I do research for a living if you need help :) I love your work!
Abby B.
2025-04-18 15:17:48 +0000 UTC“ yield curve control, and zero interest rate policy in a small open economy” author Callum Jones, Mariano Kulish (published September 2022)
Abby B.
2025-04-18 15:12:28 +0000 UTCI think most people get ZIRP wrong. I'm a big macroeconomics enthusiast, would be happy to chat with you about my take on ZIRP & the non-ZIRP era. I can point you in a few different directions on books/blog posts/lectures/etc. As Nando Alvarez-Perez mentioned, MMT (Modern Monetary Theory) is by far the best lens to understand this stuff, IMO. Start with Stephanie Kelton and Warren Mosler. Feel free to email me, would love to chat about it - adam.arthur.rice@gmail.com
Adam Rice
2025-04-18 15:09:52 +0000 UTCOoo excited to see where this goes. Random smattering of fed history, MMT stuff, etc: -Ben Norton’s podcasts whenever he goes off on interest rates -Michael Hudson duh, plus Naked Capitalism probably has a great archive going back to 2008: https://www.nakedcapitalism.com/2023/07/the-united-states-financial-quandary-zirps-only-exit-path-is-a-crash.html -ministry for the future -declarations of dependence -the deficit myth -secrets of the temple
Nando Alvarez-Perez
2025-04-18 15:00:57 +0000 UTCThat infamous Casper mattress pitch deck positioning the thing you lay on at nighttime as "a platform for sleep"
ja ak rtgr
2025-04-18 14:59:28 +0000 UTCRAND Corporation- RAND.org commentary by Charles Wolf Jr. “Zero Interest, Greater Inequality?” From 2015.
Abby B.
2025-04-18 14:54:47 +0000 UTC
