Shows / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Lucas and Luna examine how central banks shape the economy through money supply and interest rates. Each episode dissects a specific policy move — a rate hike by the Federal Reserve, a quantitative easing program by the ECB, or a reserve requirement change by the People's Bank of China — and traces its impact on inflation, employment, and financial markets. Lucas brings the macroeconomic framework, citing exact data points from recent central bank statements and academic research. Luna pushes…
Episodes
Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest RatesWhy Central Banks Watch the Repo Market So Closely
In this episode, Lucas and Luna unpack the repo market — the plumbing that lets banks borrow cash overnight using government bonds as collateral. They explain…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About Dealer Balance Sheets
Central banks don't just set interest rates—they also have to make sure the financial plumbing works. In this episode, Lucas and Luna dig into the…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About Collateral Haircuts
Central banks don't just set interest rates — they also decide how much of a discount, or haircut, to apply when banks pledge assets as collateral. In…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About Auction Failures
In this episode of Monetary Policy Explained, Lucas and Luna dig into a quiet but crucial corner of central banking: what happens when a government bond…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About Inflation Indexed Bonds
In this episode of Monetary Policy Explained, Lucas and Luna explore the quiet but powerful role that inflation-indexed bonds play in central bank policy…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About the Bank of England
Central banks are often discussed in abstract terms, but this episode zooms in on one institution: the Bank of England. We explore its unique history — from…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About the Neutral Rate
In this episode of Monetary Policy Explained, Lucas and Luna explore the concept of the neutral rate of interest — the 'Goldilocks' level that…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Forward Guidance
In this episode of Monetary Policy Explained, Lucas and Luna unpack forward guidance—the central bank's promise about future policy. They explore how it…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About Your Bank's Capital Ratio
In Episode 161 of Monetary Policy Explained, Lucas and Luna dig into a number that quietly decides how much central banks can push on the economy: the capital…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Their Balance Sheet as a Policy Tool
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna dig into the central bank balance sheet — not as an abstract concept, but as an…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Are Using Instant Payment Systems
Episode 159 of Monetary Policy Explained dives into the quiet revolution of real-time payment systems. Lucas and Luna unpack how central banks from Brazil to…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Labor Market
Episode 158 of Monetary Policy Explained with Fexingo. Central banks talk about inflation targets and interest rates, but the labor market is where the real…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Digital Currencies to Reshape Payments
Central banks around the world are quietly building their own digital currencies, and the implications go far beyond faster payments. In this episode, Lucas…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About Climate Stress Tests
In this episode of Monetary Policy Explained, Lucas and Luna explore a fresh angle in central banking: climate stress tests. With regulators increasingly…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About Payment Systems
Central banks don't just set interest rates and print money. Behind the scenes, they run and regulate the plumbing that moves trillions of dollars every…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About Bank Profitability
Episode 154 of Monetary Policy Explained digs into a quiet but crucial topic: why central banks care about bank profitability. Lucas and Luna walk through the…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Currency Swaps in a Crisis
When funding markets freeze and dollars are scarce overseas, central banks don't just sit back. They activate a quiet, powerful tool: currency swap lines…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
The Stealth Tool Behind Every Central Bank Move
Central banks don't just set interest rates and hope for the best — they shape the money market minute by minute with a tool most people have never heard…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About the Output Gap
Episode 151 of Monetary Policy Explained with Fexingo: Lucas and Luna dig into the output gap — the difference between what an economy can produce and what it…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Keep Their Reserves in Other People's Currencies
Why do central banks hold trillions in foreign currencies like the dollar, euro, and yen? In this episode, Lucas and Luna unpack the mechanics and the motives…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Care About Term Premia
In this episode of Monetary Policy Explained, Lucas and Luna unpack the term premium — the extra yield investors demand for holding long-term bonds instead of…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Anchor Inflation Expectations
In this episode of Monetary Policy Explained, Lucas and Luna dig into one of the quietest but most powerful tools central banks have: anchoring inflation…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use TLTROs to Lend to Banks
In this episode of Monetary Policy Explained, Lucas and Luna dive into the targeted longer-term refinancing operations, or TLTROs, that the European Central…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Emergency Lending Facilities
When banks suddenly need cash, central banks don't wait for the next policy meeting. In this episode, Lucas and Luna dive into the mechanics of emergency…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Hold Foreign Exchange Reserves
Central banks hold trillions in foreign exchange reserves, but why? In this episode, Lucas and Luna unpack the real reasons behind these stockpiles — from…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Buying Gold Again
Central banks have been buying gold at the fastest pace in decades, and it's not just about hedging against inflation. In this episode, Lucas and Luna…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Housing Market
In this episode, Lucas and Luna explore how central banks view the housing market as a key transmission channel for monetary policy. They focus on the recent…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
When Central Banks Buy Government Bonds for Their Own Account
In this episode, Lucas and Luna unpack the quiet but powerful tool central banks use to shape long-term borrowing costs: buying government bonds for their own…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Spend Billions Defending Their Currency
In October 2022, the Bank of Japan spent roughly 70 billion dollars in a single day buying yen—a record intervention. But it barely moved the exchange rate…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Stockpiling Gold
Central banks have been buying gold at the fastest pace in decades—over 1,000 tonnes annually in both 2024 and 2025. Lucas and Luna dig into the drivers behind…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Go Negative with Interest Rates
In this episode, Lucas and Luna explore the controversial monetary policy tool of negative interest rates. They focus on the European Central Bank's…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Macroprudential Policy to Curb Credit Bubbles
Central banks aren't just raising interest rates. In 2026, they're increasingly using macroprudential tools like loan-to-value caps and…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Forward Guidance to Manage Expectations
In this episode, Lucas and Luna dive into forward guidance—one of the most powerful communication tools central banks have. Using the Federal Reserve's…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Are Executing Quantitative Tightening
As of mid-2026, the Federal Reserve has shrunk its balance sheet by over $1.5 trillion from the 2022 peak, and the European Central Bank is accelerating its…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Estimate the Neutral Rate of Interest
In late 2025, the New York Fed's estimate of R-star—the neutral rate of interest—fell to 0.75 percent, the lowest since the pandemic. But what is R-star…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Are Testing Digital Currencies
China's digital yuan now reaches over 200 million wallets. But central banks from the Eurozone to Nigeria are racing to build their own digital…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Taylor Rule to Set Interest Rates
What formula do central bankers actually consult when setting interest rates? The Taylor Rule, devised by economist John Taylor in 1993, prescribes a policy…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Political Pressure Is Testing Central Banks
In March 2026, the Turkish lira hit a new low after President Erdogan appointed a dovish central bank governor. This episode dives into the theory of central…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Dollar Swap Lines to Stabilize Funding
When dollar funding seizes up, central banks don't just watch. They activate swap lines. This episode walks through how the Federal Reserve, the Bank of…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Reverse Repo Facility
Episode 130 of Monetary Policy Explained with Fexingo. Lucas and Luna dive into the Federal Reserve's overnight reverse repo facility — a once-obscure…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Savings Glut
In episode 129 of Monetary Policy Explained with Fexingo, Lucas and Luna explore why central banks are fixated on the global savings glut — and how it's…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Wage-Price Spiral
In this episode of Monetary Policy Explained, Lucas and Luna drill into one of 2026's most debated concepts: the wage-price spiral. They explore whether…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Output Gap Again
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna dive into the output gap — the difference between actual GDP and potential GDP — and…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Term Premium Again
Episode 126 of Monetary Policy Explained with Fexingo: Lucas and Luna break down the term premium — the extra yield investors demand for holding long-term…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Devalue Their Own Currency
Central banks rarely say it out loud, but deliberately weakening the exchange rate is one of their oldest tools. In this episode, Lucas and Luna unpack…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Inflation Expectations Surveys
In Episode 124 of Monetary Policy Explained with Fexingo, Lucas and Luna explore how central banks rely on inflation expectations surveys — from the University…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Shapiro-Stiglitz Efficiency Wage Model
Today, Lucas and Luna explore how central banks incorporate the Shapiro-Stiglitz efficiency wage model into their understanding of labor markets and inflation…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Discount Window
In Episode 122 of Monetary Policy Explained with Fexingo, Lucas and Luna dive into the central bank discount window—a tool that lets banks borrow overnight in…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Watch the Loan-to-Deposit Ratio
Episode 121 of Monetary Policy Explained with Fexingo dives into the loan-to-deposit ratio (LDR) and why central banks monitor it as a signal of bank funding…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Credit Impulse to Predict Growth
Episode 120 of Monetary Policy Explained with Fexingo dives into the credit impulse – the change in new credit creation relative to GDP. Lucas and Luna unpack…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching Bank Funding Costs
Lucas and Luna explore why central banks are increasingly focused on bank funding costs as a leading indicator of financial stability and monetary policy…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Set Inflation Targets
Episode 118 of Monetary Policy Explained with Fexingo dives into the history and mechanics of inflation targeting, using the Reserve Bank of New Zealand's…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Are Watching the Labor Market Tightness
Central banks monitor labor market tightness via the ratio of job vacancies to unemployed workers. This episode dives into the specifics: the JOLTS data, the…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Liquidity Coverage Ratios
Episode 116 of Monetary Policy Explained with Fexingo dives into the Liquidity Coverage Ratio — the post-2008 rule that forces banks to hold enough…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Money Supply Curve
In this episode of Monetary Policy Explained, Lucas and Luna dig into the money supply curve: what it is, why central banks care about it, and how it shapes…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Determine the Neutral Rate of Interest
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna dive into the concept of the neutral rate of interest—often called R-star. They…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Neutral Rate Again
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna dig into R-star — the neutral rate of interest — and why it matters more than ever in…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Phillips Curve
In this episode, Lucas and Luna explore how central banks use the Phillips curve to gauge the trade-off between inflation and unemployment. They break down why…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Overnight Index Swaps to Read Markets
Episode 111 of Monetary Policy Explained with Fexingo. Lucas and Luna dive into the world of overnight index swaps, or OIS. They explain how the OIS rate…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Reserve Requirements as a Policy Tool
In this episode of Monetary Policy Explained, Lucas and Luna dive into an often-overlooked but powerful tool in the central bank toolkit: reserve requirements…