Dual interest rates always work
The future of monetary policy - Dual interest rates
The significance of dual interest rates remains under-appreciated. The European Central Bank, Bank of Japan, and the Bank of England’s facilities are by fa...
Presentation on dual interest rates
PM Europe roundtable...
It’s time for the ECB to use its monetary power
Eurozone growth has stalled and inflation is below the ECB’s definition of price stability. As the recent actions of ECB make clear, further monetary easing is necessary for the ECB to fulfil its mandate.
Un...
Redesigning monetary policy
We need a modern monetary policy (MMP). Policy needs redesigning for three fundamental reasons:
Firstly, the mental models for thinking about how the macro-economy in the developed world works have been brok...
More on post-interest rate monetary policy
Accounting objections to cash transfers don’t add up, and if CBs bought equity they could reduce inequality
There is growing recognition - most recently by Janet Yellen - that should another recession strike...
Functional finance and fiscal rules – a synthesis (Part II)
Introduction
A curious argument has broken out over the Labour’s proposed fiscal rule. Some advocates of functional finance, in particular, have been vociferous in their criticisms. There is scope for a consid...
Central bank ‘equity’ debunked
The equity of a corporation is the difference between its assets and liabilities. Under typical accounting practice for central banks, transferring cash directly to households would result in a decline in their...
Raising rates is a stimulus
There are two broad categories of monetary policy instrument: 1) measures which are aimed at influencing market interest rates, and 2) transfers from the central bank to the private sector.
‘Conventional’ m...
More on Bitcoin (Part I)
Bitcoin proves that the 'interest' paid by central banks on bank reserves (IOR) is not an "interest rate" but a helicopter drop to banks. Imagine that Bitcoin came with an additional feature, that all holders o...
Intelligent money & valuing Bitcoin
The most significant innovation in Bitcoin is not blockchain, nor the fact that it is a non-state-backed electronic currency. It is truly ground-breaking because it is the first 'intelligent' money. An 'intelli...