Category Archives: Central banking

This category considers issues pertaining to central banking and overall regulation of the banking system.

When Britain went fiat and the skies remained above

A former student sent me an E-mail recently and updated me on his progress and his current research project – the history of British banking in the 19th century. He also wanted to draw my “attention to a little known … Read the rest of this entry »

Posted in Britain, Central banking, UK Economy | 12 Comments

Bank of Japan is in charge not the bond markets

I read a report on the American news network CNBC the other day (November 15, 2016) – The bond vigilantes are back, and Trump better pay attention – which included some so-called experts in a video claiming to know something … Read the rest of this entry »

Posted in Central banking, Japan | 10 Comments

Australia’s new central bank governor chooses to dissemble on fiscal issues

The new governor of the Reserve Bank of Australia (our central bank) gave a speech in Melbourne yesterday (November 15, 2016) – Buffers and Options to the annual dinner of the Committee for Economic Development of Australia (CEDA). CEDA is … Read the rest of this entry »

Posted in Central banking, Fiscal Statements | 8 Comments

When New is Old and just another exercise in denial

There is now a so-called “New View of fiscal policy”, which, in fact, is not all that different to the “Old View” although the proponents are hell-bent on convincing us (and presumably themselves) otherwise. The iterative bumbling along of mainstream … Read the rest of this entry »

Posted in Central banking, Economics, Fiscal Statements | 20 Comments

Trump might do us a favour – expose the myth of central bank independence

Prior to the ‘surprise’ victory of Donald Trump in last week’s US Presidential poll, there was an article (September 28, 2016) in the Financial Times – Trump is right to take aim at the ‘political’ Fed – arguing that Trump … Read the rest of this entry »

Posted in Central banking | 15 Comments

ECB – every which way but to the point

Eurostat released the latest national accounts data for the Eurozone yesterday (October 31, 2016) – Preliminary flash estimate for the third quarter of 2016 – which showed that real GDP grew by 0.3 per cent in the third-quarter 2016, unchanged … Read the rest of this entry »

Posted in Central banking, Economics, Eurozone | 5 Comments

Pragmatic retreats into reality by the IMF will be ephemeral

On June 26, 2016, the Bank of International Settlements (BIS) published its – 86th Annual Report, 2015/16 – claimed that “there is an urgent need to rebalance policy in order to shift to a more robust and sustainable global expansion … Read the rest of this entry »

Posted in Central banking, Economics, IMF | 8 Comments

First appearance by Australia’s new central bank governor disappointing

On September 18, 2016, the Reserve Bank of Australia ushered in a new governor, in the form of Philip Lowe. It been the deputy governor for several years and has worked at the RBA all his professional life except for … Read the rest of this entry »

Posted in Central banking, Economics | 11 Comments

Helicopter money is a fiscal operation and is not inherently inflationary

There was a Project Syndicate article (September 2, 2016) – The Unavoidable Costs of Helicopter Money – claiming that “In fact, there are major downsides to helicopter money”. Hmm. Should I read this article was my thought at the the … Read the rest of this entry »

Posted in Central banking, US economy | 29 Comments

Monetary policy has to work hand-in-glove with fiscal policy to be effective

In a paper – Fiscal Policy, Monetary Policy and Central Bank Independence – delivered to the Jackson Hole Economic Policy Symposium, hosted by the Federal Reserve Bank of Kansas City, last week (August 25-27, 2016), Princeton University academic Christopher Sims … Read the rest of this entry »

Posted in Central banking, Economics, Fiscal Statements | 7 Comments