This paper argues that in reserve currency issuing economies at the effective lower bound, outright transfers from the central bank to households are both more equitable and more effective in achieving monetary policy objectives than asset purchases or negative interest rates. It shows that concerns pertaining to central banks’ policy solvency and equity position can be addressed through a careful assessment of a central bank's loss absorbing capacity and, if need be, tiered reserve remuneration policies. It also spells out key differences to a debt or money financed fiscal stimulus, which are particularly pronounced in a currency union without a central fiscal capacity. The paper concludes by discussing broader institutional, political, and legal considerations.
International Monetary Fund
Advancing the Monetary Policy Toolkit through Outright TransfersSascha Buetzer (May 6, 2022)
https://www.imf.org/en/Publications/WP/Issues/2022/05/06/Advancing-the-Monetary-Policy-Toolkit-through-Outright-Transfers-517641
The Wizard of Oz in the central bank ivory tower will hand out the sweeties with Solomon like accuracy.
ReplyDeleteNo need for that nasty democracy thing.
Russia is concerned about the direction of development of the European Union, which is becoming an appendage of NATO.
ReplyDeleteThis was announced by Deputy Foreign Minister Rudenko.
Which was always the case and why the current economic paradigm was created as they put The Berlin wall on wheels and pushed it forever Eastwards.
The economic paradigm was designed to reflect NATO's expansion and why the EU was set up the way it was.
Was discussed openly by the Man behind Thatcher and Regan on the American TV show firing line. Who went on to write Thatchers memoirs.
You can listen to it yourselves on this link.
https://m.youtube.com/watch?v=BZMVKwmeprY&t=398s
Yet, academics think this battle of ideas over the economy can be won in a class room or in a debate.
ReplyDeleteIt can't - "Real power" decided long ago that the economics paradigm has to reflect foreign policy and the geopolitical map.
Of course Russia and China know fully what this meant when the Berlin Wall was out on wheels.
Now they have decided to expand NATO in the South China sea which has been happening anyway.
Never before has the superpowers been so open about it.
" if only we could have a word with them and explain MMT to them"
Is bonkers they know how it works and have done for hundreds of years. Real power decided to set it up the way they have for a specific purpose. To control and own the world.
Knowledge of MMT doesn’t matter if you’re a USD zombie nation…
ReplyDeleteIf they understood MMT they would just use the knowledge to lobby the US to worry less about the US current account deficits so they could get more USDs…
Why the IMF, World Bank and the rating agencies.
ReplyDeleteReally just Work out of a cupboard in the Pentagon.
USD zombie nation has no choices they have no power, none at all.
ReplyDeleteWhen they do grow a set of baws regime change happens.
Look at why Ukraine happened - the coup.
Look at Pakistan another elected leader gone.
Look at the death squads in South America.
Look what they did in Iraq and how Bremer and The Bremer plan was implemented.
The West just apply the pressure and Bully them into submission. Holding $ debt is a geopolitical weapon.
What they done with Pinochet in Chile in the 80's is the blue print that they exported worldwide.
It has also changed the structure of democracy
ReplyDeleteWe now have one party nation states in the West
Because foreign policy and the geopolitical map demands it.
Economic policies and their beneficiaries are just a series of happy coincidences.
ReplyDelete/sarcasm
Yeah XLF is up $1 to $33 in over 2 years… boy those “beneficiaries “ really have it made….
ReplyDeleteRussia is withdrawing from the Council of the Baltic Sea States, the Foreign Ministry said.
ReplyDeleteThe CBSS is an international organization founded in 1992. It consists of 11 states — Russia, Denmark, Estonia, Finland, Germany, Iceland, Latvia, Lithuania, Norway, Poland and Sweden. A number of other States have observer status.