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- The case for negative nominal interest rates and how to attain them: Revisiting the Buiter-Eisler approach
- No Negative Rates in Euroland (yet)
- Reinhart and Rogoff’s coding mistake: Much Ado About Nothing
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Tag Archives: central banks
ECB, SMP, ETC. Who pays for what?
After the financial crisis hit in 2008, new acronyms have been appearing at a rapid pace around the globe. These mainly describe the various measures taken by the world’s central banks to offset the troubles caused by the crisis. Many took the form of liquidity provisions to aid “frozen” banking markets. The European Central Bank launched on May 14, 2010 a so-called Securities Market Programme (SMP), under which it – temporarily – allows itself to purchase Euro denominated government bonds. In its decision, the ECB motivated the move by “ . . . in view of the current exceptional circumstances in financial markets, characterised by severe tensions in certain market … Continue reading
Posted in Economics, Macroeconomics, Monetary policy
Tagged Central bank independence, central banks, European Central Bank, Financial crisis, Jean Claude Trichet, Marvin Goodfriend, Quantitative easing, Securities Markets Programme, Treaty on European Union
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The Inflation Fallacy and central banking debates in the US
Among my favorite contemporary academic economists is N. Gregory Mankiw. I have always found his academic writings very lucid and to the point. I was once again reminded of this today, when I stumbled over some debates about abolishing the Federal Reserve System. Opponents of central banking, mostly self-proclaimed followers of the “Austrian school”, view central banks as monopoly powers that undermine free markets and are inherently inflationary – implying a government-supported devaluation of the population’s wealth. In the United States, these opponents are having golden days, as they can blame the Fed for having not only caused the financial crisis, but also for engaging in irresponsible quantitative easing that … Continue reading
Posted in Economists, Macroeconomics
Tagged central banks, Economic schools, inflation, Milton Friedman, money, N. Gregory Mankiw, Paul Krugman, Quantitative easing, Ron Paul
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