Introduction Governments made major interventions to shore up the financial system during the Global Financial Crisis, which lasted from 2007 until the end of the Eurozone crisis in 2012. These…
Central Bank
Bank of England makes the case for taxpayer bailouts of central banks: it’s mandatory
Introduction The Bank of England has taken the lead amongst the world’s central banks in issuing a working paper about how central banks can replenish their capital, now that they…
CBDCs: the hottest topic in central banking. What form of Central Bank Digital Euro should the ECB Launch?
Introduction – 130 Central Banks have CBDC Projects Since we last reported on the ECB’s thinking about CBDCs1, multiple central banks have undertaken research in designing, operating and selling CBDCs.…
The Outlook for Europe’s banks and economies in the light of Money Supply Increases and potential Reductions
Followers of US monetary policy are raising concerns about the consequences of the Federal Reserve’s efforts to reverse the 17% growth in the money supply (M21) in the two-year period…
Central banks should be wobbling in their drive towards Central Bank Digital Currencies
Introduction Central banks have undertaken many investigations, pilots and proofs-of-concept into Central Bank Digital Currencies (CBDCs), proving little beyond the lack of a convincing case in their favour, but unearthing…
February’14 Newsletter: A Weak Recovery Turns Monetary Policy Into A Gamble
European growth stutters along as fear of deflation exerts pressure on the ECB to loosen monetary policy further.
October’14 Newsletter: National Debts Reappear, Old Issues Remain Unsolved
Something is rotten in the European Union! It looks like a hide and seek game, where countries and banks are playing a very dangerous game for the citizens’ future. Thus, between political instabilities, stealthy defaults, unhealthy and reckless banks and a real estate market that is artificially boucing back, there are many concerns about the EU’s future.
This 3rd newsletter, written by Kevin Dowd and Gordon Kerr with Enrico Colombatto, is pointing out the auterity consensus tested as the Irish liquidation of Irish Bank Resolution Company, anayzing also further Collapses, Poor Results and Regulatory Arbitrage in banking.
Bailouts, Monetary Policy and Banking: Where Is The European Union Heading?
Prof. Enrico Colombatto (Turin), IREF scientific director, has provided his update on EU policies. This month, he describes sovereign bailouts, the probable change of monetary policies, and the repayment of ECB loans.
Domestic. How are the high profile struggling countries faring – Greece, Cyprus, Portugal, Ireland?
Despite the January media narrative that the worst of the crisis is over and the bailouts are working, the specific positions of the four countries challenge this position.
According to various Internet sources, Irish banks would have borrowed €51bn from the Irish central bank by the end of December, under an obscure program listed in the balance sheet as “other assets”. That is, the Central bank has electronically printed up new currency units for Irish commercial banks, without issuing debt behind these actions. The actions of the Irish central bank are not ignored by Germany, but fall out of the area of official monetary policy and appear to involve money creation outside the normal control of the European Central Bank.