Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/333862 
Year of Publication: 
2024
Citation: 
[Journal:] Journal of Business and Economic Studies (JBES) [ISSN:] 2576-3458 [Volume:] 28 [Issue:] 2 [Year:] 2024 [Pages:] 31-50
Publisher: 
Northeast Business and Economics Association (NBEA), Port Jefferson, NY
Abstract: 
This article seeks to connect today's inflation with one of the least studied and understood creations of the Federal Reserve - the repurchase (repo) market. Despite decades of existence, it is only in the last few years that the repo market has ceased to function smoothly, experiencing first a moment of crisis followed by one of great profitability. When functioning properly, the repo market went virtually unnoticed. Now that it is not, the market has gained the attention of mainstream economics as well as policy makers. However, conventional academic analysis is limited and cannot fully capture the effects that the repo market has had on the overall economy. In this article, we argue that the causes of the pandemic inflation and its public policy response can be understood as the culmination of the longer term currents of globalized financialization and central bank independence. To sharpen our focus on the shorter term, we construct upon the heterodox position of conflict inflation, and argue that the repo market and its principle actors should be considered within the discussion.
Subjects: 
Repurchase market
Federal Reserve
Inflation
JEL: 
E51
E58
E31
Creative Commons License: 
cc-by-sa Logo
Document Type: 
Article

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