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Robert P. Murphy explores how changes in the Federal Reserve's reverse repurchase agreements may help clarify two ongoing puzzles he has encountered.
He elaborates on an argument made by another commentator, suggesting that examining both the expansion and contraction of these Fed operations could provide insights into economic questions that have been difficult to resolve.
Murphy has previously addressed government fiscal concerns. He discussed the historical context and Austrian school response to U.S. government debt surpassing 100 percent of GDP. These earlier views inform his current analysis of Federal Reserve mechanisms.