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 fund manager, economist, and writer. His most recent book is Money (2nd ed) published by Routledge. He is also a supporter of Big Issue Invest (BII), the investment arm of The Big Issue, and is one of the initial limited partners in BII’s Social Enterprise Investment Fund LP. In a personal capacity, he makes direct investments in social enterprises. He also supports and advises The Empathy Museum.

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.


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