Daily Archives: July 11, 2011

Robin Harding

Charts often circulate that show the size of the Fed’s balance sheet alongside movements in commodity or stock prices – they are used to make a prima facie case that QE2 inflated commodity prices.

Here is a not-very-good version but the best I could manage with FRED (note to St Louis – it’d be lovely to have the GSCI index plus all the numbers from H.4.1). Another one you often see is commodity price movements on the days when the Fed actually conducted QE2 buying. 

Claire Jones

A barometer of the Bank of England’s interest, or otherwise, in financial stability has been to calculate the proportion of expenditure devoted to it relative to monetary policy.

Take a recent grilling of chairman of the Bank’s court Sir David Lees, and some of his fellow members, by Treasury Committee chair Andrew Tyrie: