Notes on the Crises

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2nd Month Anniversary of 'Notes on the Crises"

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The Pandemic-Induced Depression from a Monetary Political Economy perspective.
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2nd Month Anniversary of 'Notes on the Crises"

Thank You so Much for Your Support

Notes on the Crises
May 20, 2020
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Hello Reader,

Yesterday was the 2nd month anniversary of this newsletter “Notes on the Crises”. I wanted to take out a moment to thank you all for your support, in whatever capacity you’ve been providing support, and review the media this substack has gotten over the past month and praise it's gotten on twitter. This month has really been the month of interviews for me. I was thrilled to begin the month by speaking to Tracy Alloway and Joe Weisenthal on “How The Crisis Pushed The Fed Into New Territory” on their Bloomberg  podcast Odd Lots.The description of the episode was also extremely generous:

Amid this crisis, Nathan Tankus, a researcher at the Modern Money Network, has emerged as one of the foremost experts on what the Fed has done, and what it’s capable of doing, through his widely read newsletter

A week later I was interviewed and quoted in a Washington Post story on the Federal Reserve interventions in the final paragraph of the story:

The weaker restrictions on recipients of the Fed’s lending program may be partly justified, said Nathan Tankus, research director at the Modern Money Network, which studies monetary policy. The corporate bonds that the Fed is purchasing from companies can be resold, whereas direct loans establish an agreement between the company and the government that makes the asset less valuable to the central bank, he said.

“Purchases of debt are a slightly more arm’s-length transaction than the loan, which is forming a bilateral relationship,” Tankus said. “But this is really just the fig leaf the Fed can use to justify lifting the restrictions.”

On May 1st Yakov Feygin and Dominik Leusder generously cited me in an essay on “The Class Politics of The Dollar System” in a publication of the think tank the Jain Family Institute. On May 11 I got the chance to be on economist David Beckworth’s podcast “Macro Musings” talking about authorizing the Federal Reserve to issue its own securities, the crisis and monetary policy more generally. That was an especially fun experience for me and I’m thrilled there’s a full transcript! To round out the month, economist Brad DeLong praised my series on the Federal Reserve’s Coronavirus actions on the Washington Center for Equitable Growth’s blog:

Yet all who are not experts deep in the weeds do not understand what he and his central bank have done and are doing. In order to find out, you need to be following the thoughtful and patient Nathan Tankus.

That same day I was interviewed on Sam Seder’s long-running podcast “The Majority Report” on “Pandemic Monetary Policy”. It’s been quite a busy month! I’ve also written 13 posts in the past month, which, while not the pace of my first month, is still quite frequent. Here’s the praise I’ve been getting on twitter for what I’ve been writing (though I’m sure I’ve missed some of it):

Twitter avatar for @MagnusMacro
Magnus Macro @MagnusMacro
You really genuinely love to see it. Congrats on the success @NathanTankus
Twitter avatar for @NathanTankus
Nathan Tankus @NathanTankus
Thanks so much to all my paid subscribers! Here is my round up of this incredible, incredible month. I truly can't believe how successful this has been and I'm so excited about continuing it from now on! https://t.co/UwhICJWVdi
4:26 AM ∙ Apr 20, 2020
31Likes7Retweets
Twitter avatar for @MarkVinPaul
Mark Paul @MarkVinPaul
.@NathanTankus is an absolute *MUST* follow during this crisis. His posts are so, so good. The ? is, "**how** that government support should come and whether we need to preserve pre-existing social relations exactly as they appeared pre-crisis."
nathantankus.substack.comA Payments Holiday is More Realistic Than You ThinkA Reply to Perry Mehrling
12:55 PM ∙ Apr 21, 2020
51Likes20Retweets
Twitter avatar for @TheStalwart
Joe Weisenthal @TheStalwart
.@NathanTankus really taking his monetary policy explainers to the next level. Just read this first paragraph here. nathantankus.substack.com/p/central-bank…
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7:49 PM ∙ Apr 21, 2020
89Likes20Retweets
Twitter avatar for @its_mccarthy
Michael McCarthy @its_mccarthy
Very useful "explainer" series from @NathanTankus on monetary policy
nathantankus.substack.comPurchase and Sale Policy #MonetaryPolicy101The start of a new explainer series on Monetary Policy
9:49 PM ∙ Apr 21, 2020
17Likes6Retweets
Twitter avatar for @arjun_jayadev
Arjun Jayadev @arjun_jayadev
nathantankus.substack.com/p/purchase-and… @NathanTankus, this is wonderful. I try to do something like this when I teach the intro to econ 2 class and more in the money and banking class. But this is much better, clearer and useful for teaching. Part of the readings next year!
nathantankus.substack.comPurchase and Sale Policy #MonetaryPolicy101The start of a new explainer series on Monetary Policy
5:03 AM ∙ Apr 23, 2020
36Likes9Retweets
Twitter avatar for @TheStalwart
Joe Weisenthal @TheStalwart
@tracyalloway @NathanTankus We also talked about how Nathan knows so much about how the Fed works, which is evident if you read his newsletter, which everyone should subscribe to.
nathantankus.substack.comNotes on the CrisesThe Pandemic-Induced Depression from a Monetary Political Economy perspective.
12:05 PM ∙ Apr 23, 2020
33Likes13Retweets
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Johanna Högfeldt @HogfeldtJohanna
This is a very good piece and explanation how important part the collateral policy is in the monetary policy frame work. Borrowers need some combination of personal creditworthiness and collateral-worthy assets to get loans.
Twitter avatar for @NathanTankus
Nathan Tankus @NathanTankus
First post of the week! Another #MonetaryPolicy101 post, this time on collateral and collateral policy. I think I'm going to really emphasize collateral policy in the 101 series given how important it is to crises. https://t.co/y9nPtdvdow
12:30 PM ∙ Apr 23, 2020
8Likes2Retweets
Twitter avatar for @astradisastra
Astra Taylor @astradisastra
Edifying interview w @NathanTankus. I expected to learn about monetary policy (and did!) but I also appreciated the discussion about pedagogy and how Nathan got interested in finance to begin with.
Twitter avatar for @TheStalwart
Joe Weisenthal @TheStalwart
NEW ODD LOTS OUT: @tracyalloway and I talked to @NathanTankus about the Fed's extraordinary actions taken during this crisis, and the uncharted territory Powell & Co. now find themselves in. https://t.co/NrLKHlBZUn
5:10 PM ∙ Apr 23, 2020
18Likes5Retweets
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Karina Patrício @KPatricio1
Do not miss this great Odd Lots podcast with @NathanTankus. Crucial for anyone interested in monetary policy and banking operations. From Minsky to the role of law, it's all here.
Twitter avatar for @TheStalwart
Joe Weisenthal @TheStalwart
NEW ODD LOTS OUT: @tracyalloway and I talked to @NathanTankus about the Fed's extraordinary actions taken during this crisis, and the uncharted territory Powell & Co. now find themselves in. https://t.co/NrLKHlBZUn
9:59 PM ∙ Apr 24, 2020
23Likes6Retweets
Twitter avatar for @MylesUdland
Myles Udland @MylesUdland
Typically adept reframing from @NathanTankus — "[A] central bank which decides to accept a wider variety of items as collateral on better terms is choosing to loosen its monetary policy stance."
nathantankus.substack.comCentral Bank Collateral Policy #MonetaryPolicy101“The Open Secret of Central Banking”
4:39 PM ∙ Apr 26, 2020
14Likes9Retweets
Twitter avatar for @pankaj
Pankaj Gupta @pankaj
When I started working on Payments, I knew next to nothing about Economics/Finance/Money/Banking/Monetary Policy. Been reading up to fill this gap since. These days, learning a lot of #MonetaryPolicy101 from @NathanTankus. Brilliant parable in this post about Payment Systems.
Twitter avatar for @NathanTankus
Nathan Tankus @NathanTankus
New #MonetaryPolicy101 post: An introduction to payment systems using the parable of the shtetl. By the end of this series I may put every fairy tale and story into balance sheet terms. This one is deceptively simple and has a lot to teach! https://t.co/Xx9hZRFhJx
3:23 PM ∙ Apr 28, 2020
14Likes1Retweet
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Bharat Ramamurti @BharatRamamurti
These posts continue to be a great resource for people trying to understand what the Fed is up to.
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Nathan Tankus @NathanTankus
Finally, part 6 of my ongoing series covering the Federal Reserve's crisis actions is up. My apologies for the long delay, between the MSLP expansion announcement and some personal issues that come up, I got delayed in getting this out. Hope you enjoy it! https://t.co/aQw44vkBe3
4:08 PM ∙ May 3, 2020
70Likes22Retweets
Twitter avatar for @rethinkecon
Rethinking Economics @rethinkecon
Confused about all the talk of equities, asset swaps, and open market operations? Take a look at this monetary policy 101 guide from @NathanTankus to help you understand!
nathantankus.substack.comPurchase and Sale Policy #MonetaryPolicy101The start of a new explainer series on Monetary Policy
11:00 AM ∙ May 4, 2020
22Likes8Retweets
Twitter avatar for @DavidpStein
David Stein @DavidpStein
Meritocracy is bogus, but the world awakening to the genius of @NathanTankus is the best thing to happen in the past few months. He’s out here busting his way into the big leagues of the econ policy commentator crowd—without an invite. You love to see it.
nathantankus.substack.comNotes on the CrisesThe Pandemic-Induced Depression from a Monetary Political Economy perspective.
3:00 PM ∙ May 4, 2020
157Likes34Retweets
Twitter avatar for @maddy_e
Madeleine #FreeThemAll Elfenbein @maddy_e
Doh I meant @NathanTankus who I know from way back, I mean last week, thanks to nathantankus.substack.com. But seriously, great newsletter from a gifted explainer whom I trust because he's on board with @RashidaTlaib's efforts to use fiscal policy to save our lives.
nathantankus.substack.comNotes on the CrisesThe Pandemic-Induced Depression from a Monetary Political Economy perspective.
7:43 PM ∙ May 5, 2020
7Likes4Retweets
Twitter avatar for @TheStalwart
Joe Weisenthal @TheStalwart
Great piece from @NathanTankus about what banks really do
nathantankus.substack.comBanks as Debt Monetizers: Monetary Policy 101The Shtetl Bank Comes to Town
10:02 AM ∙ May 6, 2020
53Likes19Retweets
Twitter avatar for @_emschwartz
Evan Schwartz @_emschwartz
This is a really helpful explanation of repurchase (repo) agreements and the relationship between what central banks will accept as collateral and how tight or loose credit / monetary policy is (from @NathanTankus)
nathantankus.substack.comCentral Bank Collateral Policy #MonetaryPolicy101“The Open Secret of Central Banking”
5:00 PM ∙ May 6, 2020
47Likes13Retweets
Twitter avatar for @ProfKateJudge
Kate Judge @ProfKateJudge
While I have some concerns, core idea here merits attention. In sum: Uncapped (but not condition-free) programs protecting payroll, munis and DIP financing + 2008 facilities = greater simplicity, accountability, and efficacy than current interventions.
Twitter avatar for @NathanTankus
Nathan Tankus @NathanTankus
I think this is going to be a provocative one :) My proposal for an alternative, far better accounting gimmick for the CARES Act, and the crisis response more generally https://t.co/3QzHQnQa5z
3:29 PM ∙ May 7, 2020
5Likes2Retweets
Twitter avatar for @TheStalwart
Joe Weisenthal @TheStalwart
One of the most @NathanTankus tweets ever is busting out U5 as the key measure for the purpose of accurate historical comparison
Twitter avatar for @NathanTankus
Nathan Tankus @NathanTankus
If you use the proper comparison-what is currently called "U5"-and refer to the only actual monthly unemployment series we have from the Great Depression, what emerges is we haven't experienced this level of unemployment since February 1938. Graph and data courtesy @gabriel_mathy https://t.co/s4UF92GPnS
1:06 PM ∙ May 8, 2020
43Likes14Retweets
Twitter avatar for @TheStalwart
Joe Weisenthal @TheStalwart
This is a must-read from @NathanTankus that's particularly relevant in light of fintech companies wanting to get more into banking, and bank companies that wanted to get more into consumer payment apps and things like that.
nathantankus.substack.comBanks as Payment Processors. Monetary Policy 101#MonetaryPolicy101 is a weekly series about the basics of monetary policy. This is the fifth Post. See Post 1 here, Post 2 here, Post 3 here and Post 4 here. If you like this series please consider taking out a paid subscription here. It is reader support which sustains my ability to treat this subs…
10:07 AM ∙ May 13, 2020
57Likes25Retweets
Twitter avatar for @MpeterF
David M. P. Freund @MpeterF
Interested in finance? Reading this? @NathanTankus is conveying a world of "heterodox" (i.e., real) knowledge in this series and, meanwhile, blowing us away.
nathantankus.substack.comNotes on the CrisesThe Pandemic-Induced Depression from a Monetary Political Economy perspective.
12:42 PM ∙ May 13, 2020
8Likes4Retweets
Twitter avatar for @sanjuktampaul
Sanjukta Liberty Paul @sanjuktampaul
@NathanTankus Nathan, these are really good. You really have a gift for this kind of writing.
5:20 PM ∙ May 13, 2020
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Unlearning Economics @UnlearnEcon
@NathanTankus not to demand any more of you, but I think you could write an actually good monetary economics textbook
6:00 PM ∙ May 13, 2020
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war on corona @bluser12
@UnlearnEcon @NathanTankus Was thinking that Nathan could publish these notes in a book later on. But a textbook would be nice too!
6:03 PM ∙ May 13, 2020
Twitter avatar for @KatharinaPistor
Katharina Pistor @KatharinaPistor
Great post with more to come I know already who won’t like the idea of separating payment systems from credit...
Twitter avatar for @NathanTankus
Nathan Tankus @NathanTankus
New #MonetaryPolicy101 post- Banks as Payment Processors. https://t.co/hs8WheGD3S
5:14 PM ∙ May 13, 2020
16Likes5Retweets
Twitter avatar for @LDHerrine
Luke Herrine @LDHerrine
Nathan blogging out what will become the standard law-and-money textbook, piece by piece. Hope you're paying attention!
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Nathan Tankus @NathanTankus
New #MonetaryPolicy101 post- Banks as Payment Processors. https://t.co/hs8WheGD3S
5:18 PM ∙ May 13, 2020
53Likes6Retweets
Twitter avatar for @pschillingc
Pedro Schilling @pschillingc
These are REALLY good and approachable for a subject that is very intricate, without losing on the nuance. Looking very much forward to the next posts.
Twitter avatar for @NathanTankus
Nathan Tankus @NathanTankus
New #MonetaryPolicy101 post- Banks as Payment Processors. https://t.co/hs8WheGD3S
5:57 PM ∙ May 13, 2020
8Likes2Retweets
Twitter avatar for @NikMilanovic
Nik @NikMilanovic
Really enjoyed this @NathanTankus history of how and why banks to charge to process payments, how the Fed unified a bunch of small rural banks into a monetary system, and why it shouldn't cost anyone money just to use or access their own money. nathantankus.substack.com/p/banks-as-pay… #fintech
nathantankus.substack.comBanks as Payment Processors. Monetary Policy 101#MonetaryPolicy101 is a weekly series about the basics of monetary policy. This is the fifth Post. See Post 1 here, Post 2 here, Post 3 here and Post 4 here. If you like this series please consider taking out a paid subscription here. It is reader support which sustains my ability to treat this subs…
10:23 PM ∙ May 13, 2020
19Likes7Retweets
Twitter avatar for @Patrick_Wyman
Patrick Wyman @Patrick_Wyman
If you're looking to get a better understanding of the basics of monetary policy, I've found the Monetary Policy 101 series by @NathanTankus to be incredibly useful. Part 1 here: Purchase and Sale Policy
nathantankus.substack.comPurchase and Sale Policy #MonetaryPolicy101The start of a new explainer series on Monetary Policy
2:17 AM ∙ May 14, 2020
80Likes14Retweets
Twitter avatar for @MylesUdland
Myles Udland @MylesUdland
This crisis has very urgent and concrete concerns, but I really enjoy @NathanTankus' work emphasizing how important it is right now to change what we think of as possible in our financial system bit.ly/3dL5s49
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2:01 PM ∙ May 14, 2020
10Likes3Retweets
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Jeff Manuel @jeffmanuel
This is kind of a mind-blowing idea... https://t.co/vE0SjtnJ4Q
Twitter avatar for @NathanTankus
Nathan Tankus @NathanTankus
Following up on an earlier post on local government currencies, here I propose university issue their own currencies and propose the Federal Reserve backstop them. https://t.co/ghQGKwBo3r
7:17 PM ∙ May 14, 2020
4Likes1Retweet
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Rishabh Kumar @Kumar_EconIneq
There is no better time for your students to learn about monetary economics. Do them a favor, skip the textbooks (its summer anyway). Get them to subscribe to @NathanTankus feed at
nathantankus.substack.comNotes on the CrisesThe Pandemic-Induced Depression from a Monetary Political Economy perspective.
5:52 AM ∙ May 15, 2020
70Likes14Retweets
Twitter avatar for @mariacacilia
Maria C. Schweinberger @mariacacilia
Excellent primer on the payment system: nathantankus.substack.com/p/banks-as-pay…. "Separating payment processing from credit creation could serve to greatly reduce the power of banks and to highlight the inherently political and public nature of their debt monetization role." @NathanTankus
nathantankus.substack.comBanks as Payment Processors. Monetary Policy 101#MonetaryPolicy101 is a weekly series about the basics of monetary policy. This is the fifth Post. See Post 1 here, Post 2 here, Post 3 here and Post 4 here. If you like this series please consider taking out a paid subscription here. It is reader support which sustains my ability to treat this subs…
9:38 PM ∙ May 15, 2020
22Likes5Retweets
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B. Dan Berger @BDanBerger
Payments 101. Read @NathanTankus https://t.co/7OX56CWX75
Twitter avatar for @NathanTankus
Nathan Tankus @NathanTankus
Some night, or maybe tomorrow morning, reading for those out there interested in money and monetary policy. Put on some boots, we're wading into the plumbing of the payments system. https://t.co/fM3t7X8eTW
1:46 AM ∙ May 20, 2020
11Likes3Retweets
Twitter avatar for @arjun_jayadev
Arjun Jayadev @arjun_jayadev
@NathanTankus People, you should subscribe to this series.(I have) It's really a masterclass of explanation.
1:33 AM ∙ May 20, 2020
18Likes3Retweets

There’s a larger and larger crowd of people saying my work is extremely worthwhile and deserves continued support. I hope readers of this newsletter agree. I’ve continued to get paid subscriptions and can comfortably treat this newsletter as a full time job. If I keep on getting paid subscriptions I’ll be able to produce this substack indefinitely, but at a higher quality. If I get enough paid subscriptions, I’ll start a podcast to go along with the writing I do here. Please consider taking out a paid subscription if you haven’t as it really is direct support from readers which makes this kind of in-depth and detail-oriented writing- and education- possible. Thanks again.


Stay Safe!

Nathan Tankus

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