By: Gregory Connor
Important to see (among the key Euro flaws) how a block on conditional redistributions can also act as a block on the now-standard use of lender-of-last-resort to prevent bank runs. In the standard...
View ArticleBy: Joseph Ryan
In protecting creditors and creditor countries, while allowing bank ‘jogs’, (a new one on me) the ECB facilitated a one way flow of credit during Trichets reign (reign rather than tenure). To say...
View ArticleBy: bazza
The redistributive effect of monetary policy? What exactly is the mechanism by which this effect is supposed to take place? Let’s say the ECB prints money to buy government bonds through the ESM with a...
View ArticleBy: DOCM
@ bazza An alternative view (coinciding to a large extent with the German one). http://www.forbes.com/sites/michaelpento/2012/08/07/why-more-money-printing-will-increase-unemployment/ High levels of...
View ArticleBy: Gregory Connor
@Gtfaway - Yes you are correct it should be “the ECB will not” rather than “the ECB can not” since this is their (IMHO, wrong) choice in the circumstances.
View ArticleBy: bazza
@DOCM I think that article you posted has to be one of the most nonsensical I have ever read. It is like something from an aptitude test, where the objective is to find as many logical fallacies as...
View ArticleBy: John McHale
@bazza The post does not focus on redistributions via inflation. I take it that inflation is fixed over the longer term by the ECB’s inflation target. (You might recall from earlier discussions that...
View ArticleBy: DOCM
@ bazza and John McHale I made no judgement with regard to the article in question other than to say that it was an alternative view widely shared in Germany. That is a political reality. I do follow...
View ArticleBy: Shay Begorrah
@DOCM But this is an opinion rather than a contribution which advances the debate. <Snorts derisively/> For those who follow US politics DOCM’s approach (which is not unique) is very similar the...
View ArticleBy: DOCM
@ All On the subject of re-distribution, one can say, without any risk of contradiction, that charity begins at home....
View ArticleBy: BeeCeeTee
As usual, when the ECB’s PR flak takes it in the neck on his purported facts, he changes the subject.
View ArticleBy: Michael Hennigan - Finfacts
@ DOCM The Indo article presents some of the reality and Prof McHale’s concerns with seigniorage and ECB redistribution seems a little arcane in the context of the arguments among the members of the...
View ArticleBy: Shay Begorrah
Courtesy of the Guardian’s “Eurozone Crisis Live” blog (by line ‘Documenting the car crash of EMU for over 1597 1598 days’.) The European Central Bank also issued another plea to national governments...
View ArticleBy: DOCM
@ MH Not for much longer! The timings are not looking as good as they did a few weeks ago cf. http://online.wsj.com/article/SB10000872396390444900304577577380255223456.html Juncker is now on record...
View ArticleBy: paul quigley
Here’s some food for thought from Claus Vistensen. Clefts sticks all over the place....
View ArticleBy: Fiatluxjnr
@DOCM It looks like the EU are backing the Greeks into a corner which might have severe repercussion… “Sources told Kathimerini that the troika has instructed the government to reduce the public sector...
View ArticleBy: bazza
@John McHale I think there are several problems with Buiter’s model and its applicability to the current crisis. At the core of his analysis is the assertion that ln(m) = a - bi However, this is an...
View ArticleBy: John McHale
@bazza Thanks for the response. I hope that the model didn’t ruin your afternoon and you still got to watch the boxing. I think you are taking the model a bit too literally. The model nicely captures...
View ArticleBy: Joseph Ryan
@John McHale “The real point is that losses on asset holdings are real losses to euro zone countries. And if the benefits of those asset holdings go disproportionately to some countries, bond buying...
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