ECB was in the market buying a small amount of Greece and Portugal bonds (but not Ireland)
Posted by WARREN MOSLER on November 18th, 2010
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November 18th, 2010 at 10:46 am
Warren. We know that when the Fed purchases assets it does so by crediting the seller’s account at the Fed. There is nothing operationally that precludes this as the Fed is issuer of the currency. Does the ECB do the same when it purchases peripheral debt? Or are they operationally hindered (political constraints; lack of fiscal union) and thus have to draw funds from the EFSF? Please pardon my ignorance if this has been addressed in prior posts.
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WARREN MOSLER Reply:
November 18th, 2010 at 7:29 pm
yes, ecb purchases are not revenue constrained. they just change numbers on their own books, for all practical purposes.
they don’t need to ‘draw funds’ best I can tell
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November 18th, 2010 at 12:28 pm
Off topic, the following site was created to facilitate the work of researchers adopting the “stock-flow-consistent” methodology for building economic models, pioneered by Wynne Godley, and popularized through the book Monetary economics by Wynne Godley and Marc Lavoie.
The site is promoted by Marc Lavoie and Gennaro Zezza, and maintaned by Gennaro Zezza. If you are interested in contributing, please contact us.
http://sfc-models.net/events/courses/an-introduction-to-empirical-sfc-modeling/
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November 18th, 2010 at 1:58 pm
this novelty is now normal
Cisco CEO: “We believe the public sector business will continue to be challenging for at least several quarters”
any idea what the time course for affects on stocks will be?
Warren’s comment really rings true: “Where things go is not about market forces, but about what politicians and their appointees do next.”
Next guess: kinetics of what politicians [on 3-4 continents] and their appointees do next?
no telling the details, of course, but they have relatively fixed schedules for acting, though not talking
can they hold off inducing a panic until after Christmas shopping? (how many non-Christians in the stock mkt now? :) )
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