European Central Bank Archive

ECB’s Stark: US Has an ‘Enormous’ Debt Problem

So much for Jeurgen’s legacy: US Has an ‘Enormous’ Debt Problem: ECB Official September 1 (CNBC) — A debt crisis is still gripping the developed world, European Central Bank policymaker Juergen Stark said, adding there was no alternative but for countries to take painful steps to consolidate their public finances. “The crisis ...Read More

The Daily Telegraph: Bank borrowing from ECB

[Skip to the end] [written on Sunday] While not a problem in the US for the Fed to do this and more (in fact it should be standard operating procedure), the eurozone has self imposed treaty issues that make it very problematic. If there are defaults its the national governments that will ...Read More

THE ECB HAS A SINGLE MANDATE, INFLATION, WITH NO INCENTIVE TO DEVIATE

Not to mention my bent is inflation and growth are, at best, very weak functions of interest rates, and they work mostly through the cost side, but that’s another story – see ‘MANDATORY READINGS‘. ECB’s Weber Says Interest Rates ‘Accommodative’, Dismisses Cut Bets by John Fraher and Andreas Scholz (Bloomberg) European Central ...Read More

ECB on inflation, again

Trichet expresses the mainstream view of monetary policy: “The financial market correction — it’s a very significant correction with turbulent episodes — that we are observing provides a reminder of how a disturbance in a particular market segment can propagate across many markets and many countries, Trichet said in a debate at ...Read More

ECB reiterates rate hike warning

ECB reiterates rate hike warning FRANKFURT(AFP): The European Central Bank (ECB) reiterated Thursday a strong warning about eurozone inflation, calling for price and wage moderation and suggesting it would raise interest rates if necessary. A monthly ECB bulletin said it was “absolutely essential” that long-term inflation be avoided, underscoring that the bank ...Read More

Re: banking system proposal

Dear Philip, Yes, as in my previous posts, bank stability is all about credible deposit insurance. I would go further, and have all regulated, member banks, be able to fund via an open line to the BOE at the BOE target rate. That would eliminate the interbank market entirely, and let all ...Read More

A Rescue Plan for the Dollar

A Rescue Plan for the Dollar By Ronald McKinnon and Steve H. Hanke The Wall Street Journal, December 27, 2007 Central banks ended the year with a spectacular injection of liquidity to lubricate the economy. On Dec. 18, the European Central Bank alone pumped $502 billion — 130% of Switzerland’s annual GDP ...Read More