Digital Money News – updates and articles on CBDCs, monetary politics and state digital currencies

Wozu ein digitaler Euro, Dollar oder Yuan? fragt Die Zeit - Monetary-fiscal interactions on the way out of the crisis by Fabio Panetta

Digitales Zentral Bank Geld : Geld zwischen Schleier und Tabu (2)

Wie das kommende Digitale Zentralbankgeld (CBDC) die Banken und das Märchen vom Sparen bedroht; warum Banken kein Geld verleihen, es aber auch nicht Ex Nihilo schöpfen; und warum die orthodoxe Wirtschaftswissenschaft Geldschöpfung tabuisiert und Kreditgeld ignoriert.

Digitales Zentral Bank Geld : Geld zwischen Schleier und Tabu (1)

Hat TheEconomist den endogenen Motor des Kapitalismus enthüllt? Eher nicht. Eher 101=404. Der klassische Fehler wird nicht gefunden. Man man mag die orthodoxe "Savings&Loans" Spar-Brille nicht absetzen. Trotzdem lohnt sich die Lektüre. Die Staats-Digital-Währung kommt. So oder so.   e-Yuan will do nicely Im AngloMainstream wird jetzt öfter von digitalem Zentralbankgeld gereded. Schon wieder ein … Continue reading Digitales Zentral Bank Geld : Geld zwischen Schleier und Tabu (1)

Karlsruhe – what next?

verfassungsblog.de    27/4/2021  A Relieving Decision    by  Hanno Kube With its interim decision of 15 April 2021, the German Federal Constitutional Court has paved the way for ratification of the 2020 Own Resources Decision by the German side. The speculation that the temporary order issued on 26 March 2021 against the German President – … Continue reading Karlsruhe – what next?

Confirmed: QE feeds Matthew Effect

Breaking Old News - QE really does feed Matthew effect!  Following bankers' earlier observations we now have official mainstream confirmation that  "softer monetary policy increases inequality." Not just in the US.  A fresh study by A.L. Anderson etal  provides "... new evidence on the distributional effects of monetary policy based on detailed administrative household-level data. The … Continue reading Confirmed: QE feeds Matthew Effect

“Digital Corrections – will crypto save capitalism, and the FED ?”

The FED has no way of re-balancing or raising rates without crashing the markets. The FED doesn't want to take the blame. Not again. Even though the markets are crying out for a correction.  There is no discipline. The level of incontinence is unprecedented. QE has got to stop. But how? One would like new … Continue reading “Digital Corrections – will crypto save capitalism, and the FED ?”

Zahlmeister entpuppt sich als Milchmädchen

The UK's Daily Express daily feeds Brexiteers with eye-popping revelations about the imminent implosion of the EU .  One soon learns not to put one's money on those.  But the unearthing of a 2year old CEP report  caught my attention. It's got some eye-popping numbers relevant to Germany's idea of it's position in Europe : … Continue reading Zahlmeister entpuppt sich als Milchmädchen

De facto MMT disequilibrating DSGE ?

Turns out Peter Bofinger is not the only  German economist who can  see MMT across the sea.  There is at least one other.  Maybe more to follow? "Say it quietly, but Germany has learnt the lessons of Keynes," argues Thorvaldur Gylfason. Mind you, he is talking fiscal largesse, not ECB money.  In the "we are … Continue reading De facto MMT disequilibrating DSGE ?

Funeral of a Classic Curve?

Has the Phillips Curve  finally been buried? Whilst the FT reports on the Fed's new strategy as just another incremental codification of its extremely dovish policy,  Reuters reads it as a final straw flattening the curve out of existence: "One of the fundamental theories of modern economics may have finally been put to rest."    … Continue reading Funeral of a Classic Curve?

M & M Push EU Across Rubicon

"The deal broke two historic taboos," writes The Economist. "First, Europe’s leaders agreed that the European Commission ... may incur debt at an unprecedented scale. The NGEU will be funded by borrowing over six years, with bonds issued at maturities extending to 2058. Second, €390bn of the €750bn will be distributed as grants, and hence … Continue reading M & M Push EU Across Rubicon

Merkel Momentum?

"No more lame duck" but Hoffnungstraeger ist Merkel jetzt als Euro Presidentin, schreibt Merkel-Biographin Judy Dempsey und diagnistiziert eine dritte Merkelwende. Auch Politico's Paul Taylor sieht einen Merkel Milestone Moment: "In the twilight of her chancellorship, Angela Merkel has secured her place in the pantheon of European statesmanship by agreeing to common EU borrowing to help the … Continue reading Merkel Momentum?

Fonds not Bonds

Fonds are to bond Europe for the time being. No (explicit) eurobonds. No (explicit) ECB direct financing. Instead a confusingly mutualising and de-mutualisng  cocktail of credits and debits will have to do as the momentary expression of mutuality. "Ist auch im Deutschen Interesse." Angela Merkel assures her sceptical Sparbürger.   Schauen Sie hier die tagesschau As … Continue reading Fonds not Bonds

Schwarze Null Vergiftet Europa

In einem Artikel vor dem Euro Gipfel  schlagen die deutschen Finanz- und Außenminister Olaf Scholz und Heiko Maas flexible ESM-Anpassungen  und einen paneuropäischen Garantiefonds vor, um "sehr schnell, unkompliziert und im nötigen Umfang ... gezielte Hilfe zu leisten."    Lesen Sie hier den ganzen Artikel Die Minister scheinen einen "möglichen komplexen Kompromiss" vorzuschlagen, wie Adam … Continue reading Schwarze Null Vergiftet Europa

Creditors Kill Europe

In a pre-summit article, German finance and foreign ministers Olaf Scholz and Heiko Maas  suggest flexible ESM adjustments to provide  "quick and targeted relief... (and) ... a pan-European guarantee fund to secure loans ... (so)  the European Investment Bank (EIB) would ensure liquidity for small and medium-sized enterprises in the EU countries." read the whole … Continue reading Creditors Kill Europe

Black Zero Resurrected

Die Schwarze Null. Resurrected. Turns out the Black Zero  is resurrecting faster than Jesus.  According to Reuters "The German government will return to its savings policy once the coronavirus crisis is over, Economy Minister Peter Altmaier told ZDF broadcaster on Tuesday. "We're taking the money out at favourable conditions on the capital market and the … Continue reading Black Zero Resurrected

Lagarde geht mit der ZEIT

Lagarde goes with DIE ZEIT: click here for english version Wie erwartet war Christine Lagarde's erste deutsche Rede eine diplomatische Meisterleistung. Sanft verpackt in die Watte der Wolfgang Laudatio war die dialektische Botschaft : Sich an die Regeln zu halten bedeutet bisweilen sie zu verändern. Aber schon im ersten deutschen Zeitungsinterview (nicht mit der FAZ … Continue reading Lagarde geht mit der ZEIT

Lagarde Adagio Offuscato

Expect nothing but a repeat variation of  her 2012 Wolfgang Schäuble laudatio  from consummate diplomat Christine Lagarde today.  This is not the time to tell the Germans to get over their Schwarze Null fetish and spend money. Maybe there will be the odd softly spoken hint at clever new injection technology tunneling through southern debt mountains toward … Continue reading Lagarde Adagio Offuscato

QE5: QE farce wants to be Mousetrap

The “hell-has-no-fury like a creditor financially-repressed” farce continues, apparently intent on outdoing the London Mousetrap  with this stubborn repeat of the ancient tragedy of debtors versus creditors ? Or as bloomberg puts it "Anti-Draghi Revolt at ECB Still Won't Die." The FT tells us that the bank’s “…monetary policy committee … advised against resuming its bond purchases. … (and … Continue reading QE5: QE farce wants to be Mousetrap

QE4: Q.E.[Qd] = E.Q.[Qs]

According to my usually in-the-know Berlin banking contact, some IMF mega-brains have come up with a cunning plan to help their departing boss with her new job. It's being tested in Washington right now and Ms Legarde will try and sell it to the Berlin Elite  in November. It comes with a brand new acronym : … Continue reading QE4: Q.E.[Qd] = E.Q.[Qs]

QE3 : The Board Members’ Memo

"If you are looking for intent AND stupidity, look at governments" World Citizen on Mishtalk. I call this this post QE3 because it turns out to be my third one on this topic. "End of (His)story" was the first. Not that I realised. I was just poking fun at all the defunct economics (1) implict … Continue reading QE3 : The Board Members’ Memo

QE2 : What the hell is the ECB doing?

Luhmann had his Zettelkasten. I got my Google feed. They are not the same. Not even remotely. He spent a lifetime curating a finite conceptual collection. I am fed Big Brother's algorithms grazing the web's near infinity on the basis of my previous preferences. But both produce interesting connections. In this case my google searches … Continue reading QE2 : What the hell is the ECB doing?

QE1 : End of (His)story

Monetary policy - end of history?  by  Sabine Lautenschläger (with caw commenting) In 1992, the political scientist Francis Fukuyama announced the end of history. The cold war had just ended, and in Fukuyama’s view, this marked “the endpoint of mankind’s ideological evolution”. Liberal democracy had prevailed; the final form of government had been reached. There was … Continue reading QE1 : End of (His)story