Money and the State (Part 2: Influence of State on Monetary Systems):

"State activity in the monetary sphere was originally restricted to the manufacture of coins", however the influence of the state gradually extended beyond just controller, legislator and judge.
1/7 The state, Mises reiterated , can only supply money but cannot force it's acceptance into commercial practice. However he conceded that the states influence on commercial usage has increased because of the states importance as an economic agent has also increased.
2/7

Commodity Money, Fiat Money and Credit Money (Ludwig Von Mises):

Mises' argues that it is mistake to deal economic problems according to legal criteria" stating that; "economics must construct it's own terminology from other objects that are not money".

1/13 "A piece of paper that is specially characterised as money by the imprint of some authority is in no way different from another piece of paper that has received a similar imprint from an unauthorized person".

By this he meant that the only difference between...
2/13

Ludwig's rejection of Money as a store of value is weird to me. And his definition as just another commodity whilst stating that the utility of said commodity as a medium of exchange increases it's price beyond the perceived use-value essentially appreciates its uniqueness.
1/4 The value of the chosen media of exchange is indeed a store of value, which is first objective, (how do others value this?) before being "subjective". By observation the more marketable commodities are identified according to popular demand, which the informs the...
2/4

Austrian School vs. Post-Keynesian Economics (Part 1 Austrian Proposition):

Austrian Economics: Emphasizes individual choice, subjective value, and spontaneous market processes. It critiques government intervention and central planning.
#macro #econtwitter #Economics
1/10 1. Subjective Value Theory: Prices are determined by individual preferences, not intrinsic value (Mises, Rothbard).

This neglect cost considerations as all producers are assumed to be price takers in all markets—here price elasticity doesn't matter.

2/10

Global Financial Markets Outlook (Per Asset Class) 2025 (Part 2: Key Macroeconomic Influences)

Here we present the implications of developments in the US and China for global assets discussed in part one.

1/10

https://twitter.com/Zero_Analyticz/status/1871549633429905686

United States:

The Federal Reserve’s emphasis on inflation control remains pivotal. As stronger-than-expected year-end growth and higher 2025 projections signal more #USD strenght.

This introduces challenges for markets reliant on weaker currency dynamics.
2/10

It would seem you'd not been following my monetary policy threads or understanding them- it is expected, economics is complex and one has to be if a certain IQ to grasp it.This is probably why you are...
1/8

https://twitter.com/arinzemaduekwe/status/1867995255146225695

...confused. Again I'd be more than happy to lecture you and the public.

In a an economy absent structural inefficiencies in the industrial and financial sector (where the risk premium priced into yields is low), MPR is the major tool for stabilizing prices.
2/8

DEAR, ARINZE

Thank you so much for this feedback!
I ALWAYS relish a teachable opportunity, as always. As this handle exists to share knowledge and I know if not you someone else would benefit

Lets Kick-off the lecture:

1. Nigeria need to focus "POLICY" on FDI,...
1/11

https://twitter.com/arinzemaduekwe/status/1867936898322423857

...not "MONETARY" Policy, as it is ineffectual & not effective at drawing in Fixed Capital investments (besides it's role of enhancing exchange rate and price stability.)

Now this is why your line of thought is theoretically flawed by ALL Schools of thought.

2/11
#EconLecture

RE-EVALUATING @cenbank 's MONETARY EASING PROSPECTS: AN INNOVATIVE STRATEGY

After a deeper reflection in the quote thread from our last article on the above, we recognize a possible need to ease benchmark rates to reduce the cost of much needed FPIs into government...
1/10

https://twitter.com/Zero_Analyticz/status/1866707087159595486

securities and stabilize FX inflows in the long-run —and by extension Exchange rates.

MPR as a Debt & FX Management Strategy:

Recall our view that based on the the unique characteristics of the Nigerian economy, CRR is the main instrument to address tight...
2/10

Following @cenbank Governors hinted at the possibilities of an end to monetary tightening measures, stating in his keynote address at the Chartered Institute of Bankers of Nigeria (CIBN) dinner,...
1/10

#Naira #CBN #MonetaryPolicy201

https://twitter.com/Zero_Analyticz/status/1866668517946179826

....that interest rates may soon decrease sighting expected easing inflationary pressures.

Given that the core fundamentals driving inflation are yet to be fully addressed (food & energy prices and FX Supply), the statement seems overly optimistic. As Eve though...
2/10

NAIRA WATCH: ZERO EQUILIBRIUM TAKE ON #USDNGN AND WHY YOU SHOULD HOLD. 🧵

RECALL the quote post of Naira strengthening against the Greenback (and Sterling as well) in divergence to a relatively stronger #USD v major reserve currencies.

This we see as a correction...
1/10

https://twitter.com/Zero_Analyticz/status/1865266601110417521

....as opposed to strength as the #Naira is just getting around it's "fair value" of N1500/$1 (+/- 20%).

#USDNGN closed at N1,495.51/$1 on the NAFEM on Friday December 6 and currently trades at approximately N1,516.62/$1 at BDC Rate.

The spread has also narrowed...
2/10

NAIRA GAINS V USD TO N1500/$ RANGE:

From the Nigerian Apex Bank exchange rate portal data, the #USD crashed to N1,567 in the Nigerian Foreign Exchange Market (NFEM) window on Thursday, November 5.

Thursday's exchange rate represents a 2.5% or N41 appreciation from...
1/7 ...Wednesday's close of N1,608/$1.

Effects:

This has also led to the Apex Bank crashing dollar rate as Naira recorded gains in the last 24 from Wednesday through Thursday. Translating to an immediate cut reduction for importers.

2/7

CRUDE AT THE US OPEN.

Crude has increased further contrary to our expectations of a mid-day bearish movement on the Open.

BRENT: $74.31 (Frame 1)|$71.37 (3)
WTI: $70.08 (2) | $67.20 (4)
AVG: $72.11 |$69.28
SPREAD: $4.05 | $4.17
1/6

https://twitter.com/Zero_Analyticz/status/1859926446908858738

From the above we can see a stronger bid for oil 🛢️ relative to last week.

- The Spread widening from last weeks close represents a larger rise in BRENT (+4.17) relative to WTI (+3.87%). However spreads have stayed above $4 resistance.

- The average of both benchmarks...
2/6

A CRYPTOCURRENCY TO GUARD AGAINST NAIRA DEVALUATION & INFLATION:

We barely talk about crypto, and instead of doing a full paper, we make observations on a #USDollar linked crypto — #USDC .

What is USDC?
Is a stable coin that is pegged to the value of the US Dollar.
1/7 Each #USDC is backed by reserves which comprise of #USD and Short-term USD bonds. It is also used for payments.

With a ratio is 1:1 reserves assets backing crypto, #USDC moves with the USD. As such, it is not expected to rise exponentially against the dollar or fall below.
2/7

@PaulAlaje The Naira devaluation, hasn't been a means of escape per say, as Naira for the most part under the fixed exchange rate regime, was overvalued. And so when we run into FX supply issues the only way for the Naira to go was down.

Under the managed float, with - as you say - 80%... @PaulAlaje ...of finished goods imported, coupled with the reliance on imported component goods, Naira has continued to slide as fundamentals (Crude oil supply, FDI) Lagos.

However to say that the increase in MPR & CRR have not been effective in combating inflation would be to dismiss...