The Disaster of Negative Interest Policy
Those who had hoped that things could not get worse with the monetary policy of the European Central Bank (ECB) have been proven wrong….
Read MoreCentral Banking
The Ghost of Failed Banks Returns
Last week’s failure in the US repo market might have had something to do with Deutsche Bank’s disposal of its prime brokerage to BNP,…
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Treascomm: Steve Baker, Mark Carney and the Future of the Monetary System
How Is Negative Interest Possible?
Germany has recently joined Switzerland in the dubious All Negative Club. The interest rate on every government bond, from short to 30 years, is…
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Inflationary financing and GDP
This article demonstrates that only government borrowing in the US and UK drives GDP growth. This surprising conclusion is confirmed by long-run statistics. GDP…
Read MoreDeeply negative nominal rates are on their way
Growing evidence of a severe global recession is sure to provoke more aggressive monetary policies from central banks. They had hoped to have the…
Read MoreThe Bank’s ‘Stress’ Tests
My report on the Bank of England’s latest (November 2018) stress tests was published by the Adam Smith Institute on August 3rd. The purpose of the stress tests…
Read MoreThe Coming Regime of the ECB: Radical Centrism
There is a changing of the guard at the European Central Bank this year with two important new appointments. Philip Lane, the governor of…
Read MoreFed chairman and the Phillips curve
On July 11, 2019 before the Senate Banking Committee, the Federal Reserve Board Chairman Jerome Powell said that the relationship between unemployment and…
Read MoreInterest Rates, Global Value Chains and Bank Reserve Requirements
Interest Rates, Global Value Chains and Bank Reserve Requirements Global Value Chains have suffered since 2009 Despite low interest rates, financial costs remain…
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