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2017-04-22

- Members of the single currency are forced to issue obligations in a currency none of them can print. Why not just call for a global gold standard?

If you like the euro, why not just call for a global gold standard?

Argentina and Korea at least had the option of breaking their pegs to the dollar and printing money to support their banks. Similarly, countries bound by the gold standard always had the option of de-linking and re-pegging. 

There is no comparably straightforward way to exit the strictures of the euro.

So, for those who believe the euro was a good idea at the time and remains a good idea for prospective members, why would you oppose restoring the classical gold standard? Why should the benefits of integration and price stability be limited to Europe?


Om man har en sedelpress går man inte i konkurs, skrev jag den  4 november 2011

2017-04-19

IMF Global Financial Stability Report April 2017

prolonged low-growth, low-interest rate environment can fundamentally change the nature of financial intermediation. 

Combined with low credit demand, this would lower bank earnings, particularly for smaller, deposit-funded, and less diversified institutions, and 

presenting long-lasting challenges for life insurers and defined-benefit pension funds.

Read more here


About Banks at IntCom


California Legislature approved a package of groundwater-management laws

In 2014, the California Legislature approved a package of groundwater-management laws -- long after most other Western states had done so -- that are now slowwwwwly beginning to take effect.

Local groundwater-management agencies are being formed that will have to come up with plans to reach groundwater sustainability within 20 years.

Bloomberg 18 April 2017

Groundwater at Google


2017-04-17

Germany’s trade surplus is a threat to global stability

Amounts to 9 pc of GDP.

Measured by capita, it is roughly three times the size of the Chinese trade surplus

Matthew Lynn, Telegraph 15 April 2017

2017-04-14

The Eurogroup is asking Greece to do something unprecedented

Historical experience — not just Greece’s experience, but that of a typical advanced country — is inconsistent with the primary surplus  paths that would make Greece’s current debt sustainable.

New research from Jeromin Zettelmeyer, Eike Kreplin, and Ugo Panizza suggests Schaeuble is wrong: there is no reasonable likelihood that the Greek government can continue without significant further debt relief.

Matthew C Klein, FT 13 april 2017

Glass-Steagall Big US banks defy calls that they should be broken up

Talk from the Trump administration about restoring some kind of modern-day Glass-Steagall, 

a Depression-era law that prohibited banks from trading and investing at the same time as taking /insured/ deposits from consumers.

FT 14 April 2017

2017-04-13

Ms Lagarde insisted there could be no special treatment of Greece when it comes to any fund decision on joining the bailout.

“If and when I put a programme to the board of the IMF it will have to comply with the rules of any…programme,” she said. 

“There cannot be a specific case for any particular country.”


FT 12 April 2017