Monthly Archives: May 2012

Brazil Cuts Rates to Record Low as Economy Stalls

Another central bank may have it backwards as lower rates turn out to be deflationary and slow things down via interest income channels? Brazil Cuts Rates to Record Low as Economy Stalls May 30 (Bloomberg) — Brazil’s central bank cut … Continue reading

Posted in BRIC, CBs, Inflation, Interest Rates |

The (Semantic) Problem with MMT: An Exercise in Framing | | New Economic PerspectivesNew Economic Perspectives

Posted in Deficit, Government Spending | Tagged |

Looking like a euro zone solution has evolved

Looks like the drama could be about over, with the ECB now deciding to support the entire banking system. The ECB guarantees bank liquidity via lending to any member bank with qualifying collateral. The list of qualifying collateral is kept … Continue reading

Posted in ECB, EU |

Dallara Says Greek Euro Exit May Exceed 1 Trillion Euros

>    >    Apparently, MMT is a hard concept for the IIF to grasp. >    Yes! Incompetent disgrace. No reason an exit has to cost them anything in real terms. But because they believe otherwise they’ll work to keep Greece in. … Continue reading

Posted in ECB, Emerging Markets |

FT: Big European funds dump euro assets

Thanks! These are onetime events that tend to reverse after running their course. Aka inventory liquidation Big European funds dump euro assets By David Oakley and Alice Ross May 24 (FT) — Some of Europe‚Äôs biggest fund managers have confirmed … Continue reading

Posted in EU |

Frozen Europe Means ECB Must Resort to ELA

They have become resigned to the idea that the ECB must write the check for the banking system as do all currency issuers directly or indirectly as previously discussed. And they now also know the ECB is writing the check … Continue reading

Posted in Bonds, Currencies, ECB, EU |

Still no political support to leave euro

*GREEK DATA RC POLL CONDUCTED MAY 21 TO MAY 23 ON 1,019 PEOPLE *GREEK DATA RC POLL SHOWS 56% GREEKS SAY DRACHMA A CATASTROPHE *GREEK DATA RC POLL SAYS 83% GREEKS WANT TO KEEP EURO *GREEK DATA RC POLL SAYS … Continue reading

Posted in ECB, EU |

Issuers vs Users of a Currency

Interview with The Norwich Bulletin, Oct 6, 2010

Posted in Currencies, Deficit, Government Spending |

macro update

The US economy seems to be muddling through at modestly positive GDP growth, supported by a still sort of high enough 8% or so govt fiscal deficit. The year and fiscal cliff is a looming disaster but it’s too soon … Continue reading

Posted in Deficit, EU, GDP, Government Spending, USA |

Secret Greek Fund Revealed

Except it’s just about an ‘allowable entry’, not a ‘fund’. The BOG, functionally a ‘branch’ of the ECB, just ‘accounts for’ negative member bank balances as loans. Presumably on a ‘legally’ collateralized basis. That’s what CB’s do in the normal … Continue reading

Posted in CBs, ECB, Greece |