Category Archives: Central banking

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

The so-called euro stability spawned banking system that caused havoc

In yesterday’s short blog post – Some Brexit dynamics while across the Channel Europe is in denial (January 2, 2019), I noted that various European Commission officials were boasting about how great the monetary union had been over the last … Read the rest of this entry »

Posted in Britain, Central banking, Eurozone, UK Economy, US economy | 7 Comments

US Federal Reserve decision exposes moral bankruptcy and incompetence

On December 19, 2018, the Federal Reserve Bank Open Market Committee (FOMC), which determines the monetary policy settings in the US, increased the policy interest rate by 25 basis points to 2.5 per cent, as part of its plan to … Read the rest of this entry »

Posted in Britain, Central banking, Japan, National Accounts, UK Economy, US economy | 19 Comments

The ‘fiscal contraction expansion’ lie lives on – now playing in Italy – Part 2

This is the second and final part in my discussion about the latest attempts by the IMF and notable New Keynesian macroeconomists to keep the ‘fiscal contraction expansion’ lie alive. The crisis in Italy is once again giving these characters … Read the rest of this entry »

Posted in Central banking, Eurozone, Fiscal Statements | 9 Comments

Japan still to slip in the sea under its central bank debt burden

President Trump banned a CNN reporter only to find his position overturned by the judicial system. Well CNN is guilty of at least one thing – publishing misleading and alarmist economic reports about Japan. In a CNN Business article last … Read the rest of this entry »

Posted in Central banking, Japan, Politics | 43 Comments

Eurozone fiscal rules bias nations to stagnation – exit is the remedy

It is Wednesday and I am doing the final corrections to our Macroeconomics textbook manuscript before it goes off to the ‘printers’ for publication in March 2019. It has been a long haul and I can say that writing a … Read the rest of this entry »

Posted in Central banking, Eurozone, Fiscal Statements | 26 Comments

Italy should lead the Member States out of the neoliberal Eurozone dystopia

The widely read German news site, Spiegel Online, published an amazing article last week (November 1, 2018) – Italy Doubles Down on Threat to Euro Stability – which confirms to me that very little progress has been within the Eurozone … Read the rest of this entry »

Posted in Central banking, Eurozone, Fiscal Statements | 23 Comments

Australian inflation data defies mainstream macro predictions – again

One of the on-going myths that mainstream (New Keynesian) economists propagate is that monetary policy (adjusting of interest rates) is an effective way to manage the economic cycle. They claim that central banks can effectively manipulate total spending by adjusting … Read the rest of this entry »

Posted in Central banking, Inflation | 13 Comments

Reflections on the 2nd International MMT Conference – Part 1

I have very little free time today. I am now in Dublin and am travelling to Galway soon for tonight’s event (see below). Last evening I met with some Irish politicians at the Irish Parliament and had some interesting conversations. … Read the rest of this entry »

Posted in Central banking, Debriefing 101, Fiscal Statements, Framing and Language, Job Guarantee | 27 Comments

Precarious private balance sheets driven by fiscal austerity is the problem

The media has been giving a lot of attention in the last week to the 10-year anniversary of the Lehman Brothers crash which occurred on September 15, 2008 and marked the realisation, after months of denial, that there was a … Read the rest of this entry »

Posted in Central banking, Economics, Fiscal Statements, National Accounts | 31 Comments

Bank of Japan once again shows who calls the shots

On August 1, 2018, the 10-year Japanese government bond yield, shot through the roof (albeit a very low one). Yields shifted from 0.05 per cent on July 31 to 0.129 on August 1, which was the largest one-day rise since … Read the rest of this entry »

Posted in Central banking, Fiscal Statements, Japan | 18 Comments