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 RatesHow Central Banks Use the Pass-Through of Policy Rates
Episode 109 of Monetary Policy Explained with Fexingo. Lucas and Luna drill into one of central banking's most maddening puzzles: the pass-through of…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Forward Rate Agreements
In this episode of Monetary Policy Explained, Lucas and Luna break down how central banks use forward rate agreements — specifically Overnight Indexed Swaps —…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Monetary Conditions Index
Episode 107 of Monetary Policy Explained with Fexingo. Lucas and Luna explore the Monetary Conditions Index (MCI), a composite indicator that blends interest…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Structural Budget Deficits
Episode 106 of Monetary Policy Explained with Fexingo. Lucas and Luna dive into the little-discussed concept of structural versus cyclical budget deficits and…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Output Gap to Set Policy
Episode 105 of Monetary Policy Explained with Fexingo dives into the output gap — the difference between actual and potential GDP — and how central bankers use…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching Housing Affordability Ratios
In Episode 104 of Monetary Policy Explained with Fexingo, Lucas and Luna dig into why central banks are paying close attention to housing affordability ratios…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Taylor Rule
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna take a deep dive into the Taylor Rule—the simple formula central bankers use to set…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Secured Overnight Financing Rate
Episode 102 of Monetary Policy Explained with Fexingo dives into SOFR, the secured overnight financing rate that has replaced LIBOR as the benchmark for…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Term Spread to Gauge Market Stress
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna dive into the term spread — the difference between short-term and long-term interest…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Are Using the Bank Lending Survey
For episode 100 of Monetary Policy Explained with Fexingo, Lucas and Luna dive into one of the most powerful yet underappreciated tools central bankers use to…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Currency Intervention
In episode 99 of Monetary Policy Explained with Fexingo, Lucas and Luna dive into the secretive world of currency intervention. Central banks don't just…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Measure Inflation Expectations From Markets
Episode 98 of Monetary Policy Explained with Fexingo. Lucas and Luna explore how central banks extract inflation expectations from market prices, focusing on…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Expectations Channel
Lucas and Luna drill into the expectations channel — how central banks influence the economy not through rate changes alone, but by shaping what people think…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Wage-Price Spiral Again
In this episode, Lucas and Luna dig into the renewed central bank focus on the wage-price spiral in mid-2026. With labour markets still tight and services…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Are Using Standing Repo Facilities
Central banks have a new emergency tool that doesn't wait for a crisis. Lucas and Luna explain the Standing Repo Facility — a permanent backstop for…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Tiered Reserve Remuneration
Episode 94 dives into tiered reserve remuneration, the monetary policy tool central banks deploy to balance rate hikes with bank profitability. Lucas explains…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Zero Lower Bound Again
Episode 93 of Monetary Policy Explained with Fexingo. Lucas and Luna drill into the zero lower bound on interest rates — a concept that seemed obsolete after…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Labour Force Participation Rate
In this episode of Monetary Policy Explained, Lucas and Luna dive into why central banks are increasingly focused on the labor force participation rate (LFPR)…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Loving the Term Auction Facility Again
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna dive into the quiet revival of the Term Auction Facility — a crisis-era tool that…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Macroprudential Tools to Tame Bubbles
In Episode 90 of Monetary Policy Explained with Fexingo, Lucas and Luna explore macroprudential policy — the toolkit central banks use to prevent financial…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Helicopter Money
Lucas and Luna dive into helicopter money—the controversial idea of central banks distributing cash directly to citizens. They trace its history from Milton…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Neutral Rate of Interest
In this episode, Lucas and Luna dig into the neutral rate of interest—often called R-star—and why it has become a fixation for central bankers. They walk…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Watch R-Star So Closely
In this episode, Lucas and Luna unpack r-star — the theoretical 'neutral' interest rate that neither stimulates nor restricts the economy. They…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching Rent Inflation
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna drill into a specific puzzle: why central banks in mid-2026 are fixated on rent…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Credit Channel Now
In Episode 85 of Monetary Policy Explained with Fexingo, Lucas and Luna dive into the credit channel of monetary policy — a mechanism that's getting fresh…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
The Cost of Money How Central Banks Set Interest Rates
Episode 84 of Monetary Policy Explained with Fexingo. Lucas and Luna break down how central banks actually set their key policy rate. We walk through the real…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Are Using the Reverse Repo Facility
Episode 83 of Monetary Policy Explained dives into the Federal Reserve's overnight reverse repurchase agreement facility (ON RRP). Lucas and Luna unpack…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Yield Curve Slope
Episode 82 of Monetary Policy Explained: Central Banks, Money Supply, and Interest Rates. Lucas and Luna dig into the yield curve slope—the gap between…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Sahm Rule to Trigger Recession Alerts
Episode 81 of Monetary Policy Explained dives into the Sahm Rule, a real-time recession indicator developed by former Fed economist Claudia Sahm. Lucas and…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Worried About the Services Supercycle
In this episode of Monetary Policy Explained, Lucas and Luna drill into a phenomenon that keeps central bankers up at night: the services supercycle. Using the…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Natural Rate of Interest
In Episode 79 of Monetary Policy Explained with Fexingo, Lucas and Luna dive into the natural rate of interest — also known as R-star — the theoretical neutral…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Term Premium to Gauge Market Sentiment
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna unpack the term premium—the extra yield investors demand for holding long-term bonds…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Tiered Reserve Systems
Episode 77 of Monetary Policy Explained with Fexingo dives into tiered reserve systems — a policy tool central banks use to shield small banks from negative…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Obsessed with the Output Gap Now
Episode 76 of Monetary Policy Explained dives into the output gap — the difference between actual and potential GDP — and why it has become a central obsession…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Wage-Price Spiral
In Episode 75 of Monetary Policy Explained with Fexingo, Lucas and Luna dive into the wage-price spiral — a concept central banks are monitoring closely in…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Output Gap
Lucas and Luna unpack the output gap—the difference between actual GDP and potential GDP—and why it matters for interest rate decisions. They look at the…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Now Targeting the Whole Yield Curve
In this episode of Monetary Policy Explained, Lucas and Luna dive into a relatively new but powerful tool: yield curve control. They use the Bank of…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use the Taylor Rule: A Real-World Case
In this episode of Monetary Policy Explained, Lucas and Luna break down the Taylor Rule: the simple equation central bankers use to set interest rates based on…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Neutral Rate
Episode 71 dives into R-star — the neutral rate of interest that central banks can't see but constantly chase. Lucas and Luna unpack why the Federal…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Reserve Requirements as a Policy Tool
In Episode 70 of Monetary Policy Explained with Fexingo, Lucas and Luna unpack the forgotten workhorse of central banking: reserve requirements. Once the go-to…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Currency Intervention
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna dive into the mechanics of currency intervention. Using the Japanese yen's slide…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Inflation Forecast Targeting
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna break down inflation forecast targeting—the central bank strategy of using economic…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Macroprudential Policy to Cool Housing Markets
Episode 67 of Monetary Policy Explained with Fexingo dives into macroprudential policy — the toolkit central banks use to prevent asset bubbles without raising…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Quantitative Tightening
Episode 66 of Monetary Policy Explained with Fexingo dives into quantitative tightening (QT) — the opposite of QE. Lucas and Luna unpack how the Fed reduced…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Issuing Digital Currencies Now
Episode 65 of Monetary Policy Explained with Fexingo drills into the quiet, practical reasons central banks from the Bahamas to Sweden to China are pushing out…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Quantitative Easing for Crisis Response
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna dive into quantitative easing — the unconventional policy tool central banks deploy…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Triparty Repo for Liquidity
Episode 63 of Monetary Policy Explained with Fexingo drills into triparty repo—the plumbing the Fed and other central banks use to inject or drain liquidity…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Lender of Last Resort Powers
In this episode, Lucas and Luna dive into the central bank's oldest and most dramatic role: lender of last resort. Using the 2008 rescue of Bear Stearns…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Exchange Rate Pegs as Policy Tools
Episode 61 of Monetary Policy Explained with Fexingo dives into the mechanics and trade-offs of exchange rate pegs. Lucas and Luna break down how the Hong Kong…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why the Fed Uses Standing Repo Facilities
In this episode of Monetary Policy Explained, Lucas and Luna break down the Federal Reserve's Standing Repo Facility (SRF) and Standing Overnight Reverse…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Helicopter Money
In episode 59, Lucas and Luna explore helicopter money—the controversial idea of direct cash transfers from central banks to households. They drill into how it…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Negative Interest Rates Actually Work
Episode 58 of Monetary Policy Explained digs into negative interest rate policy (NIRP), a controversial tool used by the European Central Bank, the Bank of…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Reverse Repos to Drain Liquidity
Lucas and Luna break down the mechanics of reverse repurchase agreements — how central banks like the Fed use them to soak up excess cash from the financial…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Standing Facilities to Anchor Rates
Episode 56 of Monetary Policy Explained with Fexingo dives into standing facilities—the lending and deposit windows central banks use to keep short-term…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Open Market Operations to Steer the Economy
In this episode, Lucas and Luna dive into the mechanics of open market operations—the most frequently used tool in central banking. They break down how the…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Steer the Yield Curve
Episode 54 of Monetary Policy Explained with Fexingo: How Central Banks Steer the Yield Curve. Hosts Lucas and Luna examine the Bank of Japan's 2022-2024…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Interest on Excess Reserves as a Policy Rate
Episode 53 of Monetary Policy Explained with Fexingo dives into the mechanics of interest on excess reserves (IOER) and its role as the de facto policy rate…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Forward Guidance to Shape Markets
In this episode of Monetary Policy Explained, Lucas and Luna dive into forward guidance — one of the most powerful yet misunderstood tools in a central…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Moral Suasion to Guide Markets
Episode 51 of Monetary Policy Explained with Fexingo dives into moral suasion—the soft power central banks use to influence markets without changing rates or…
- Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Raising Their Inflation Targets
Episode 50 of Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates. Today, Lucas and Luna dig into a quietly seismic shift…