Daily Archive: Thursday, April 19, 2012

Fiscal and monetary policy in a liquidity trap

Not bad, but let’s take it up to the next level. Comments below: Fiscal and monetary policy in a liquidity trap By Martin Wolf With floating fx, it’s always a ‘liquidity trap’ in that adding liquidity to a system necessarily not liquidity constrained is moot. Part 1 What is the correct approach ...Read More

euro denominated debt consideration

So if all the member nations stop taxing in euro and start taxing in their own currencies, the value of the euro goes to 0. And all the national govt debt denominated in euro goes worthless, along with all other euro denominated debt, thereby eliminating it. ...Read More

BOJ’s Shirakawa: Fully Committed To Asset Purchases To Meet 1% Inflation Target

Right, they’ve only been doing it for a couple of decades, monetary policy works with a lag… BOJ’s Shirakawa: Fully Committed To Asset Purchases To Meet 1% Inflation Target By Chana R. Schoenbergrand and Stephen L. Bernard April 18 (Dow Jones) — The Bank of Japan remains determined to purchase more assets ...Read More

EU slams governments for not enacting growth laws

Like this would fix it all: EU slams governments for not enacting growth laws April 18 (Bloomberg) — “It is incomprehensible that member states are still not fully implementing growth-friendly legislation we have in place,” European Commission President Jose Manuel Barroso told the European Parliament. The EU’s internal market “is probably the ...Read More