The Eurosystem and ECB are akin to the Soviet Era Monobank
We recently wrote about the extraordinary increases in debt financed by seemingly circular transactions between member state borrowing agencies and the ‘Eurosystem’ –the ECB…
The European Stability Mechanism is Critical to the Future Functioning of the Euro
In the ten years since the first iteration of the European Stability Mechanism (ESM) emerged, its status has changed markedly. Initially, it was just…
FinTech Companies; little innovation and no reform of banking
New entrants into every aspect of banking were encouraged by two recent regulatory developments: the Open Banking initiative and the ‘sandboxing’ exemptions from regulations….
FinTech Companies; little innovation and no reform of banking
New entrants into every aspect of banking were encouraged by two recent regulatory developments: the Open Banking initiative and the ‘sandboxing’ exemptions from regulations….
The BIS Takes Aim At Cryptocurrencies: Do They Understand The Economics Of Cool?
To help understand the genuinely transformative business technology of blockchain in the context of cryptocurrency hype, Wharton professor David Werbach encourages the distinction to…
The Looming Crisis in the Private Provision of Public Services Close Parallels with the Systemic Failure of Banks
The collapse in January of Carillion PLC, the UK’s second largest construction and outsourcing company has attracted considerable media coverage. Carillion was principally engaged…
Our Outlook for 2018 Interest Rates To Stay Low. The Consensus View is that Europe’s Banks are Recovering but we are Not So Sure.
by Gordon Kerr, Kevin Dowd and Cavin O’Driscoll, with Enrico Colombatto The Interest Rate Outlook Despite their shortcomings, European banks do not seem on…
Accommodative Monetary Policy is Encroaching on Fiscal Policy
We believe that the ECB is presently using monetary policy in effect to conduct fiscal, as well as monetary policy. Elected politicians should be…
Stress Tests don’t work
Criticisms of bank stress tests continue to mount, particularly as banks continue to struggle. A new problem recently emerged: the marked shortfall between the…
Inflation To Rise – We expect UK, ECB and US Policy to Diverge
Purely for geopolitical reasons, namely frustration at the failure of the governments of individual member states to respond to repeated calls for “structural reforms”,…