US versus European Community Banking

I never knew that the US Federal Reserve had someone on their Board of Governors who specialised in community banking but they do, and the Bank of International Settlements has published a recent speech by the holder, Michelle Bowman. She fills the “role designated for someone with community banking experience on the Federal Reserve Board,… Read more

Rates of Interest

Do you agree that higher interest rates will reduce demand and output/employment? Simon Wren-Lewis asked in this recent twitter feed. (Itself a rich source of all sorts of education!) I replied perhaps, possibly. And I’m beginning to wonder if even that was much too certain…. For a start, since the interest rate on my credit… Read more

Bernard Lietaer RIP

Bernard Lietaer,the most famous Belgian of whom you’ve never heard, has died at the young age of 77. He was the original economist who dared to talk about money, having been warned by Paul Krugman that talking about money would impede his career development, which was almost definitely correct. But when, as the Belgian Central Bank’s… Read more

MMT as nonsense economics – or not

The first point—that (fiat) money is ultimately a governmental construct in modern capitalist economies, and central banks can indeed produce as much of it as they want—is not news…. is the promising way Jonathan Portes kicks off his argument in ‘Prospect’ against Modern Monetary Theory (MMT), which he calls ‘Nonsense Economics’. He continues: a sovereign… Read more

Anyone for prestige gilts?

There is an interesting article in the New Statesman by Ann Pettifor where she indicates that currencies are made stronger by the taxpayer. She appears to share her view with Thomas Edison: If the Government issues bonds, the brokers will sell them. The bonds will be negotiable; they will be considered as gilt-edged paper. Why?… Read more