We compared how monetary policy worked before vs. after 2008.
You learned to read three core charts together: policy rates, M0 (monetary base), and M2 (broad money)—and why that trio explains a lot of recent history.
We contrasted US vs EU inflation after COVID (different causes → different best tools).
Case studies showed how fast liquidity support can stop bank runs (SVB 2023, NY Community Bancorp).
Teed up next topic: bond pricing (why rising yields crush long-duration bonds).
Pre-2008 = rate tool era.
Cut rates in recessions, hike to cool inflation → classic business cycle.
Post-2008 = rate tool + QE/QT.
After Lehman, rates hit the zero lower bound → central banks used QE (large-scale asset purchases). This blew up M0 but didn’t 1:1 lift M2 → the money multiplier fell.
COVID mechanics:
US: stimulus checks → sharp M2 jump → demand-pull inflation → rate hikes were the right tool.
EU: energy shock (Ukraine) → cost-push inflation → monetary tightening helps less; needs targeted fiscal support.
Bank runs in a high-rate world:
SVB: tech deposit outflows + big duration risk on securities → losses → run; all deposits guaranteed → panic ended.
NY Community Bancorp: pre-emptive support, minimal headlines.
→ Lesson: Act fast with liquidity and most crises don’t become crises.
Bond intuition you’ll need next class:
When yields ↑, bond prices ↓ (more for longer duration). Post-COVID hikes (>500 bps in <1 year) made long bonds drop ~30%+, which is why duration risk mattered so much.
Macros will keep moving; understanding rates ↔ QE ↔ money supply helps you interpret markets quickly.
Knowing the type of inflation (demand vs. supply) tells you whether to expect monetary or fiscal responses.
If you work in markets, duration & liquidity aren’t buzzwords—they’re survival.
What changed in central-bank toolkits after 2008?
Why did M0 explode but the money multiplier shrink?
What primarily drove US inflation after COVID vs. EU inflation?
In one sentence: how did SVB fail, and what stopped contagion?
If the 10-year yield jumps 200 bps, which gets hit harder: a 2-year note or a 30-year bond—and why?
M0 / Monetary base, M2 / Broad money, Money multiplier
QE / QT (Quantitative Easing / Tightening)
Demand-pull vs. Cost-push inflation
Duration, Mark-to-market, Liquidity backstop
The three charts (Rates, M0, M2) and how they moved in 2001, 2008, 2020.
A 1-page note: US vs EU inflation—what mix of monetary vs fiscal tools fits each?
Skim a short SVB summary focusing on duration + liquidity risk.
Bring a calculator: we start Bond Pricing 101 (price ↔ yield, YTM, duration/convexity).
Midterm: 22 Oct (to be reconfirmed on Moodle/WhatsApp).
Final: Tue 3 Dec, 08:00.
One Wednesday off (date TBC).
You have here more than one month, all of you.
Life goes so quick. Life goes so quick.
Let me just go back one second. Sorry, I was waiting for the record to turn on. Because of that I take attendance because I was making time in order to see if the record was going on, but I’ll call.
I saw you coming in and I’m going to just put that stick. I don’t care too much about the sticks. Who is the one that has been in the October 1st? You were no. Who was this weekend in the October 1st? You. You. Oh, both of you were. But you come to Monday class, I think.
There was one person that missed a train or whatever, just to ask him. Did you enjoy October 1st?
Have you ever seen in your life so much? Is there other time in your life that you have seen so much beer? No, it’s something that happens in oh.
I mean, I have passed the class talking about German hyperinflation, but in my head both of you are Germans for for. I mean you you feel how Germans.
You two are. Your name is Loden, Loden, Loden, Loden, Loden, Loden, Loden with D OK and Loden and Claire, Claire, Claire, Claire, Claire Duggan.
Perfect. OK. Anyone else wants me to write the sticks here? OK, Adam, Rhonda. Perfect. Anyone else?
OK, I mean this is not just something that will never happen again. You understand what I mean? No, what is it? OK, another important piece of information is that I have already.
I told you I have already writing was approved, but I want to share it with you again. The final exam will be holding the 3rd of December at 8:00 in the morning as soon as possible. And what else?
That will be the midterm. I don’t know yet what is the midterm. I have that is regarding the midterm that is there are.
There is one slide what is written when the midterm is going to be, isn’t it? I already talked about whatever. I will send you a what’s up. You already have in the slides the date for the midterm, but I’m going to review it and answer it, yes. And also there is going to be one Wednesday.
That I cannot. I don’t remember exactly which Wednesday, but I will tell you in advance. Yes, there will be one Wednesday that I cannot be here. I will tell you and this Wednesday will be free. Yep, that I will tell you.
Any questions? No. I was like, what day did you say was the final? The final, the 3rd of December? I don’t know. I mean, it should be Wednesday. If the 3rd of December is not, is not Wednesday. I’m doing something wrong. The 3rd of December is.
I mean, I I know it. I have said it with you. Let’s let me look it. Let me look it quickly and I will start with on one hand.
22nd of October, 22nd of October, yeah. And but I want to see that there is one Wednesday that I have something, an appointment.
Here there is. I don’t have here 22nd, but just one second. Let me look where are you guys for Ikade for here.
Take lesson 2 and.
Yeah.
You you can find all, not all, but most of this information in Moodle. Yes, all of you have access to Moodle.
Perfect.
Oh, I cannot open this. I have whatever.
There should be. I will see and I will write you, yes.
And I will tell you.
OK.
Where it is? Where it is?
I didn’t share with you what a disaster.
I should have.
Oh.
Did I share with you these graphs, these graphs?
I didn’t do that. Please. Sorry, I am sure we have gone through in class through this last class. Yes, last class.
We went through these graphs, you said it.
I I mean you have in your slides these graphs.
That for me.
And there’s standing this graphs is important. I thought I have shared with you in the WhatsApp group these three graphs.
Last day we went through all of them, yes. I don’t know who did I serve this week then, but let me go.
Step by step interest rates, yes, I am sure we talk about this. I am sure we talk about this.
Three ideas. I’m talking about monetary policy. Not three. Several ideas, yes.
And for me, you to understand, this is absolutely, absolutely, absolutely, absolutely important, yes.
First idea. You have all this information in the slides. Yes, first idea.
There is a before and after year 2008. Yes, what happened in year 2008? FEMA brothers collapse 14th of September.
Meemans brothers collapse. Yes, first idea. There is a before and after 11th of September. Monetary policy before the 11th of September has to do with interest rates. Monetary policy after.
The 11th of September, sorry, the 11th of September, the 14th of September has to do with what is the division. I’m going to go to this. I’m going to explain it slowly, but I have already talked last last.
For this, yes, before 2008 and after 2008 makes sense.
If you go to the slides.
Monetary policy in practice. Here you’ve got monetary policy before 2008 and monetary policy after 2008, yes.
Make sense? Oh, oh, German hyper reflection you have in groups you have talked about this and.
And what is money? We talk about this and this is another important idea.
Before 2008.
Before 2008, we have talked about this, yes.
Here there is Second World War. Yes, before Second World War there was German.
Hyper inflation, yes.
Before Second World War, there is German hyperinflation who have been in October 1st, 1st, 1st who have been in October 1st.
I like the comparison between Spain and German. German. Yes, I’m going to ask one question.
That is incorrect. The question that I am asking is incorrect. Who is more crazy, Spanish or Germans? I mean, there is not a you answer, yes, if we try to draw an average of craziness.
Probably both gear Max and Spanish wouldn’t be the same, yes.
But.
You are living in Spain.
You have been in Germany. You have been in Germany October 1st. Trust me that I’m at a state. Spanish are more free or Italians. You try to drive in Rome.
All day it looks crazy. On average, a normal day, Yemen people are more straightforward. Yes, so normal days.
Spanish are more crazy, but once craziness, craziness happens, Spanish are still happy. It’s very crazy, but not as crazy as the airmans can become. You understand what I mean?
So you have been in Germany?
Yeah, I’m not saying that they we are better than they or worse than they. What I’m saying is that we are different and normally German people are more straightforward. Spanish things more out-of-the-box or there are times that we are.
All the day out-of-the-box. We don’t know what is inside the box.
And it’s not good or bad. What I’m saying is that what is Europe? A combination of all these things, yes, with the positive things and non positive things.
And I’m talking thinking about my Slavic students. Slavic is for it. Slavic.
I really said yes. So thinking about my Islamic and talking from my Spanish perspective, from Spain, you look to the north and from above France, everything looks the same. I’m talking with all respect, but what I’m saying is that if you are in Germany.
You will see that Denmark is different from Sweden, but both of them have crums. Then there is Finland, then there is Norway, but from my point of view, first day of classes of class from Spain.
I thought about Baltic countries as a whole, but Finland is not the same that Norway and is not the same that depending who you are talking with, sensitivity is different, yes, but for Europe.
Germany, Germany is important for Europe. Let me give you 2 reasons. First reason is GDP, 4 trillion is the biggest GDP. And second reason is we’re talking about monetary policy. Where is European Central Bank in Franco?
And he’s not a casualty. Make sense. Is your money important? Yes, it is.
OK, Second World War, German hyperinflation. Yes. And then I don’t want to talk more about that, but I want to distinguish.
Between two parts before 2008, one part.
That is before the 70s.
Where?
Public institutions, institutions made sense, made sense, yes, in this period, U.S. government said.
I’m going to put one man in the moon. And what did USA, USA government did? Putting one person in the moon. Yes, during this term, United Nations was created, International Monetary Fund was created and.
Public institutions made sense, yes.
Once, once, Preto Woods was broken.
The world start changing and there was one world that nowadays is absolutely important. There is a big elephant in the room. We have a big elephant in the room. I have talked about this elephant several times.
What is the name of this elephant? Death. Death. Death. Would it make sense if you are a family to expend, expend more than what you get?
No, no family will do it. No company will do it. If you are a company and you do this, you will go into a contract. Yes. Then the question is why governments do this. I promise I don’t understand why, but I know they are doing.
They are doing since where? Since when?
With German hyperinflation, German people realise how bad was treating them and with written books fail. On one hand, governments start losing.
Confidence from people in one hand, governments starting.
Sorry for what I’m going to say. I feel really sorry, but I’m talking about your own government. In this case, I’m talking about my Spanish government, USA government. Is there a point where you see a government that you say?
You start looking at our government saying hope all these people who work in this way, who do you trust more?
Black Rock or Jerome Powell? And I trust Jerome Powell. I mean, I think he’s a professional. But who do you trust more? Who do you think is going to pay less? 45?
Or.
But if I have the Swedes, Ikia or Swedes, Coca-Cola or USA Inditex or the Spanish government and you see that private companies.
I trust more. I probably someone could be would argue with me, but in the 70s there is a big lack of confidence regarding governments and the snowball is becoming bigger and bigger and bigger. Yes.
But whatever, all these things work still before year 2008.
Central banks free money. Let me call this money being printed by central banks M0 monetary base. Yes, central banks free money. There was an amount of money circulating in the system. Let me call it a money supply to be M2 or M1, yes.
Depends what we are talking about. We talk about what is morning. Here is M0M2.
Central banks deliver control this one and can play with this one hold before 2008 by increasing or dropping interest rates. Yes, I have told you about this. I have told you about this.
I don’t have a Oh, yes. Oh, happiness. This is what I’m.
Can you take this?
If you are, she’s citizens. I am the central bank. Yes. If I drop interest rates, look what I’m doing. Yes, if I drop interest rates, I’m getting something from her. Once I reach zero, I cannot continue dropping.
But look what I’m going to do. If I go there, you see that I cannot push her, push, I cannot push her, but see in an automatic way goes there. You understand what I mean by dropping interest rates.
You get movement by increasing interest rates. She moves back in a natural way because I am increasing. But what I’m saying is you drop interest rates, you get a quick response when you increase interest rates.
You don’t know what you are getting, but probably what you are getting is.
People don’t people.
Say no. OK, if I, if I, if I shout, I will get your attention. If I go back to my normal estate, probably.
Some of you will continue attending, but there will be people that will say, oh, please, I can do whatever I need to do. And I’m not pointing anyone in particular. All of us will do, depending on our situation, one behavior or the other. Yes, you.
I’m talking about incentives, incentives. Today is not the day. But if you tell me to summarize economy, I will tell you supply and demand law, supply and demand law, supply and demand is correct. Supply and demand.
Supply and demand and demand. Supply and demand low. I will tell you please Ruiz, summarize economy, supply and demand low, then incentives and then expectations.
Expectations. If you work with incentives, expectations, and employment, you have almost everything. Why do people move? Because of incentives on one hand and expectations on the other hand. And politics knows this. They know how people work.
Hey, OK, that is monetary base.
And this, this game that I have played with Claire regarding increasing and dropping interest rates, you drop interest rates, what you will get from people happiness because I have money, I will invest, I will start spending money and if you drop interest rates, what can happen?
What happen with prices? Prices go up because a lot of people could chase forward increases. I have more money and I will start and there will be inflation. And if that is what you should do with interest rates, increase them in order to slow down the economy. But if you slow down the economy, what you can have?
A recession. And if you have a recession, what you should do with interest rates? Drop it. And this is the name of the game. Monetary policy has been played before 2008. Make sense? So monetary base.
I went through this the other day. Yes, I have already said with you these graphs and before.
2008 before 2008, this is the name of the game. Interest rates cuts in response to a crisis and then interest rates hike hikes to control inflation, yes.
And this is an economical cycle. Let me see this. We have seen this the other day, but this is absolutely important. I’m going to take here 2008.
Let me go there. I’m going to take here 2008. Let me go there and I’m going to take here 2008 and let me go there. Yes. What is monetary base? Money printed by a central bank, in this case, Federal Reserve, yes.
The money printed by Central Bank. How much money was printed?
I’m sorry, and when I say printed, I’m not talking about physical printed. This should be the issue or issue by central bank 2008 and zero was.
0.8 trivia, yes, MC.
And the name of the game is by increasing or decreasing our profit interest rates. I played it with the amount of money that circulates in the system. This is M0M0 2008. Let me see.
This is you, you lie.
Let me 2008.
You July 7.7 that.
Let me.
Yes 8.
A December 2008 here July September 10th. Let me write and to let me write a trillion in order to say that this is.
Yes.
This is.
10 times, yes, 10 times. What is this? The money issued by the central bank, the monetary base. What is this? The balance of the central bank, the assets and the liabilities. Yes, equity from the central bank is almost is really small at the end the balance it.
Has to do with this number, Yep. But it is the amount of the money that circulates in the system, amount of dollars that runs in the company. And this is a picture in 2008 if you see.
This one and this one, you can see that the monetary multiplier, money, monetary multiplier has been a constant. No. Can you see something by looking here?
Regarding monetary policy, can you read something? No, no. I mean, can you read something here? That is one point.
Here there is one point, and this point has to do with the outcome crisis. And by looking at this point, can you get any information more than there is one point? Personally, no. Also there are points here.
That probably all these points, all these points, Matt, Matt with.
Press conference from.
The Fed, I mean here that is when Federal Reserve did some of these things in order to control monetary base and all these movements match with these movements.
But trust me, this is flat. Yes, not flat. This is without movements. If you want to understand what is going on in economy, where you should look is here. This is the same time. Yes, these three graphs reflect the same time.
How did monetary policy works before year 2008? Here you’ve got we went through this last day. In this point what I’m doing is repeating last day class. Why? Why I’m repeating last day class?
Because I don’t care to repeat, because this is important and because all of I want all of you to understand where we are. Yes, it’s important to understand where we are. I think that yes.
I think that yes.
Hey here, this is the graph.
Before Retton Woods, then there is chaos and then we will go talk about this and the idea is this one, these points and here there are crises. We talk about this, yes.
It’s maximum, each peak corresponds with one big recession, and when there is a recession, what happens? Here you’ve got the recessions are so with these grey streets, yes.
Each one of these great streets has to do with our recession, yes.
What is her recession?
What is her resistor?
When I don’t understand the model, not reading.
That’s what that’s and employment. It’s like 2/4 of.
And you have given German definition and it’s OK. Recession has to do with growth. Recession has to do with growth, with negative growth if you don’t have positive growth for German.
During two periods, during two terms, terms, two quarters. I don’t know if quarter or premature, but in German, if you don’t have growth during two terms.
You are in a recession. You are officially in a recession. You see German GDP, you see that there’s that is 0.00001 of growth. I mean, I’m joking. It’s not 001, but but they are torturing the numbers in order to get growth and in order to say.
Going saying in public they are in a recession.
For the US, it’s almost the same, but you have an official agency that says we have had an I don’t know the name of the, but after one, the recession has already happened. You say during this term there has been a recession.
Make sense?
OK. But these are positions. These points has to do with crisis and let me talk a little bit about this.
Green part.
What I have written is coming. What is coming? Winter is coming. Have you seen?
If I say winter is coming, who knows what I’m talking about in Korea? Oh, sorry for sorry.
You know what I’m talking about if I say winter is winter is coming.
In my head I’m I’m talking about Game of Thrones and then in my head I have moved to.
Calamar game. How do you say it? The squid game. I have moved from Game of Thrones to Squidway game going through the money haste.
Sorry for that, but my head thinking about you. I’m also thinking about the bridge. There is another series bridge between them. There is the bridge between Denmark and Sweden, no.
You know what I’m talking about. If I say squid game, both of you know what I’m talking about. If you say money haste, everyone in Spain knows what I’m talking about and.
Does this matter? Not too much. Not too much about has to do with.
Globalization with culture, with K-pop, with we talk about K-pop. I’m not. I don’t want to repeat, but this idea of culture is important for me. Culture as a geopolitical factor.
Culture is a really, really, really important geopolitical factor. But what is coming? What is coming? Internet is coming. Internet is coming, yes.
Can you imagine how our class was 20 years ago?
It will look, it will, it will have, it look, sorry, it look the same as this class, same structure. I mean it was the same walls.
But there was no Internet.
There were no computers.
Where 60% of my students are now.
Where 60% of my students are now, I mean the number. I mean before talking about this, it was 60. Now it could be just 40.
But you understand what I’m saying. No Internet change everything. There are things that are being changed immediately, but there are other things that will not change for years.
Why? Because of inertia. Were there mobile phones 20 years ago?
20 years ago, 20 years. Oh, 20 years ago. Yes, I’m becoming old. 30 years ago. Were there mobile phones 30 years ago? No.
In less than five years, everyone we pass from not having mobile phones to having mobile phone phones. Why? Because there was no opposition. There was nothing to compete against. There was nothing in mobility, yes.
Bad.
30 years ago there was same as there weren’t mobile phones. 30 years ago there were gas cars. Yes, there are still gas cars. Absolutely, yes. In 10 years there will still be gas cars.
Yes. Why? Because gas cars exist and there is a big industry with lobbies and changing big industries takes times, takes time, yes.
Are we going to have governments the way we’ve got it in 10 years, in 20 years? I will bet that, yes. Should governments change? Absolutely, yes. Will they change? No. Why? Because of power. Make sense.
Now what I’m saying is that Internet, probably in the 90s all your families have Internet at your home.
All your families in the 90s had Internet.
In 2000, all of you were in the Internet, have been in the Internet 2010 in 2010, probably everyone have a social network. Nowadays I will bet that all of you. Is there anyone?
Who does not have Instagram here?
OK, there’s one. Bye.
But you know that it exists and it’s a decision. You can have it, but your decision is I don’t want.
And not because of ignorance. Not because you don’t have a mobile. Not because, not because, not because you understand what I mean. Everyone have or could have social networks.
And governments and all of you still vote your own in your countries with paper, with a sheet of paper in Korea too. You vote with paper. You introduce paper in a box.
All of you.
Yep, in the States, I think that yes, no.
You want from the States? You vote with paper? No, in a little way.
So democracy has evolved, but.
And your democracy, your democracy or democracy, no matter if you vote with paper or in a digital world, is still far from being perfect.
And I’m controlling myself.
You understand what I’m saying? No. What I’m saying is that this is coming took 20 years, not 20 years.
Is really quick. I was. I was alive in year 1995. I was playing in the 80s without the Internet, same as your dad or your mom.
Things are changing so, so, so, so fast.
OK, this I have talked about this and then I have told you the other day about these three things and these three things could be so you can talk, you can see these three events as independent events.
One from another one, but trust me that these three events tell us the same story. Any story regarding Internet?
In the world 11th of September, we all saw that live on television, but I don’t care about.
We show it through Internet or not. What I’m talking about is that everyone, the whole world, look at life at the same time. Information travel in an instant way. Before 11th of September, information went fast and not as fast. Yes, we show this life.
Then Internet wave touch financial system and then Internet wave touch.
Public institutions, touch universities, touch the whole world, but is the life same after COVID?
Did the life change? Did life change after moving?
Absolutely. And at the same time, not as much. And at the same time, much more than what we expect. And at the same time there are when I’m thinking about this is I’m thinking about reactions and other reactions and reactions because of the reactions, yes.
Yeah, OK.
Let me move Internet and also at the same time talking about China, talking about China is important and I am using China as a metaphor of the East.
Talking about Korea is important, but China is bigger than Korea.
But but I have Korean students here, not Chinese.
It was the same story, Second World War.
Sorry for talking in this in this way, but with the Second World War, did the war finish? With the Second World War, did the war finish?
Who say no? OK, but but from the West perspective, once the Second World War finished, the war was over.
And Korean students are thinking about.
Killing me, not killing because that.
There was still war in the East. Korea War finished, I think in the 50s, sixties, 60s in the 60s, Korea War finished.
But saying that the war finished once a country is broken.
Is is not correct.
What I can say is that nowadays.
There is China. I’m talking about Korea. Korea has gone faster, faster than China. And let me say that Japan has gone even faster than both Korea and China. But the idea is that.
After the Second World War, the East had.
Was at developing region, developing region and nowadays they have surpassed us. They has if you go to Korea, sorry.
What is the capital of Korea? Seoul. Seoul. Sorry, Seoul. If you go to Seoul, if you compare Seoul to Madrid, you will say Madrid are living in the in the Middle Ages, yes, with.
What I’m saying is that this is here is written China, but probably I’m talking about 2000. China in the year 2000 was a developing country, yes. And now we talk about this the other day. This is a short term story.
This is just taking this graph here. Internet arrived.com crisis first, then 11th of September attack, a lot of mortgages. Where is you? I have shared with you this thing regarding packages of mortgages, ABS, CDOS. We talked about this the other day.
And here Lemans collapsed. Here there was the bailout bailout of AIA.
I hate in Spanish. My dyslexia kills me. I hate bailout.
AIAIG a loud. This was. I’m not going to share this because I don’t want to share too much information regarding that this AIG rescue happened before Lehman’s collapse, yes.
And.
The idea is that once Lehman Brothers explode year 2008.
OK.
Year 2008 that we move this to year 15.
Look interest rates. After Lima’s collapse, interest rates were dropped to 0 and what was Federal Reserve reaction?
They didn’t have any choice other than start printing money and giving in this case the money to the interbank market. All this new tool after the year 2008. Let me say that interest rates level.
Interest rate tool get broken and how monetary policies start working with quantitative easing. What is quantitative easing? A soft word in order to say quantitative easing is a soft word in order to say.
Central banks printing money year 2008 Central banks start printing money. How much in this case 1.6.
In months here after a yeah, January 2009, year 2009, they double 1.6. They multiply these two times, yes.
And if you look.
Two the amount of.
Yeah.
If you look the amount of money that is in the system.
This is still a trillion, yes, so banking business.
Thanking used to have.
Just to multiply 10 times amount of money in the system, but it moves to five times. Yes, what this means that banks lost half of their business in months.
Did anybody notice in the streets? Nobody. Why? Because it was.
A financial crisis at the Federal Reserve Act at an incredible high speed. Yes, anyone knows Bernanke?
Tell my students who was Bernanke, tell them about his novel.
Price and his work in front of the Fed. Bernanke was the chair in year 2008 of the Fed.
And he’s also an academic. He was studying 1929 crisis. In 1929, the government did nothing. U.S. government did nothing. And because of that 1929 crisis becomes Great Depression.
Yes. Have you heard about the Great Depression? The government in a financial crisis in 1929 did nothing and the crisis become the Great Depression in crisis in financial crisis 2008, the government act with.
Because of this actuation, the financial crisis didn’t transform into a great depression. Yes, let me say I want to explain them why 2008.
Crisis.
Be them.
Tacoma, great depression like the 1929. Make sense? Bernanke was the Fed chair in 2008.
He received the Nobel Prize in year 2000. I will bet 22 two years ago and.
A second Great Depression, who is Bernanke? Perfect. He was the first Sir from 2006 to 2014. He played a key role during the 2008 crisis, helping to prevent a collapse of the global economy. He received Nobel Prize because he worked. Why?
The 2008 crisis in 1929, the Federal Reserve did nothing. When banks failed, there was no cost of insurance. Banks failure to collapse in credit. In 2008, the Fed lower interest rate quickly found liquidity into the system. It bailout support. OK, OK ideas for us. These are OK ideas for students. I will be.