Further thoughts on TZB

This way of framing the problem also provides an administrative alternative for the ECB to effect cash transfers. Rather than posting checks to households, it could launch an ATLTRO – a TLTRO for all. Under this facility, any Eurozone citizen can borrow from the ECB up to a maximum of, for example, 1000 euros, at infinite maturity and at a zero nominal interest rate. There is no need for collateral – infinite maturity loans have no credit risk.

About The Author

Eric Lonergan is a macro hedge fund manager, economist, and writer. His most recent book is Supercharge Me, co-authored with Corinne Sawers. He is also author of the international bestseller, Angrynomics, co-written with Mark Blyth, and published by Agenda. It was listed on the Financial Times must reads for Summer 2020. Prior to Angrynomics, he has written Money (2nd ed) published by Routledge. He has written for Foreign AffairsThe Financial Times, and The Economist. He also advises governments and policymakers. He first advocated expanding the tools of central banks to including cash transfers to households in the Financial Times in 2002. In December 2008, he advocated the policy as the most efficient way out of recession post-financial crisis, contributing to a growing debate over the need for ‘helicopter money’.

3 Responses

  1. CMA

    No need to lend just give money to people. Emoney provision on behalf of the central bank would permit this while creating a risk free payment system. The pmt system is systemic therefore the central bank should be providing emoney.

  2. CMA

    ATLTRO may also be better than heli’s where fiscal and monetary policy coordination are required IMO because it wont undermine CB indepedance.


Leave a Reply

Your email address will not be published.

* Checkbox GDPR is required


I agree