Category Archives: Central banking

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

A former UK Chancellor attempts to save face and just becomes confused

On May 6, 1997, just 4 days after coming to office in what was to become Tony Blair’s retrogressive regime, the then British Labour Chancellor Gordon Brown announced that Labour would legislate the so-called independence of the Bank of England. … Read the rest of this entry »

Posted in Britain, Central banking, Fiscal Statements, UK Economy | 6 Comments

When intra-governmental relations became absurd – the US-Fed Accord – Part 3

I am writing this while waiting for a train at Victoria Station (London), which will take me to Brighton for tomorrow’s presentation at the British Labour Party Conference. The last several days I was in Kansas City for the inaugural … Read the rest of this entry »

Posted in Central banking, Fiscal Statements, US economy | 9 Comments

When intra-governmental relations turned sour – the US-Fed Accord – Part 2

In Part 1 of this mini-series – When relations within government were sensible – the US-Fed Accord – Part 1 – I examined the pre-1951 agreement between the US Treasury department and the US Federal Reserve Bank, which saw the … Read the rest of this entry »

Posted in Central banking, US economy | 5 Comments

When relations within government were sensible – the US-Fed Accord – Part 1

I have all that much time today to write this up and it is going to be one of those multi-part blogs given the depth of the historical literature I am digging into. So this is Part 1. The topic … Read the rest of this entry »

Posted in Central banking, Fiscal Statements, US economy | 23 Comments

ECB is running out of debt to buy – more smoke and mirrors needed

There was a Bloomberg report yesterday (September 6, 2017) – Draghi’s Claim of QE Flexibility Is Attracting Doubters – that made me laugh. The sort of laugh that comes when you just realise there is parallel language spoken out there … Read the rest of this entry »

Posted in Central banking, Eurozone | 17 Comments

Fiscal policy is effective, safe to use, and markets know it

The Federal Reserve Bank of Kansas City has just hosted its annual Economic Policy Symposium at Jackson Hole in Wyoming where central banks, treasury officials, financial market types and (mainstream) economists from the academy and business gather to discuss economic … Read the rest of this entry »

Posted in Central banking, Economics, Fiscal Statements, IMF | 13 Comments

Central banks still funding government deficits and the sky remains firmly above

There was an article in the Financial Times last week (August 16, 2017) – Central banks hold a fifth of their governments’ debt – which seemed to think there was a “challenge” facing policymakers in “unwinding assets after decade of … Read the rest of this entry »

Posted in Central banking, US economy | 10 Comments

There is nothing much that Milton Friedman got right!

“If we want to ensure more people are well-employed, central banks alone will certainly not suffice” is a quote I am happy to republish because I consider it to be 100 per cent accurate. The only problem is that the … Read the rest of this entry »

Posted in Central banking, Economics | 8 Comments

Inflation abating in the Eurozone signals failure of ECB ideology

The latest inflation data from the Eurozone tells us once again how wrong mainstream monetary theory is. Eurostat released its latest estimates (June 30, 2017) – Euro area annual inflation down to 1.3% – which has according to the press … Read the rest of this entry »

Posted in Central banking, Eurozone | 6 Comments

A credit rating agency spinning its usual nonsense

There is a lot of talk among the economics journalists about the impending collapse of China, apparently drowning in mountains of unsustainable debt. Don’t hold your breath. The Chinese government fully understands its capacity as the monopoly issuer of its … Read the rest of this entry »

Posted in Central banking, Economics, Fiscal Statements | 13 Comments