Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘Central Banks’

Blackrock CIO: The Endgame Is Coming And Central Banks Will Debase Everything To Spark Inflation

Posted by hkarner - 8. Oktober 2019

Profile picture for user Tyler Durden

Blackrock’s Chief Investment Officer, Rick Rieder, best known perhaps for recently suggesting that the ECB should monetize stocks, writes in the Blackrock blog today and highlights the economic policy state-of-play today, and where it may lead to should economic growth falter, productivity not materialize, and populism continue to thrive.

* * *

The major global central banks continue to draw bigger guns in their battle against deflation, yet in some places, it appears to be of no avail. The fact is that the share of sovereign yields that are in negative territory keeps increasing and the average level of these interest rates becomes ever more negative. Further, quantitative easing (QE) purchases of sovereign debt have transitioned to purchases of corporate debt, and in some places equities; with inflation still elusive and improved growth prospects in question. That all leads one to wonder where (and how) these policies end? What is today’s monetary policy endgame?

Turn to economic history for perspective Den Rest des Beitrags lesen »

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From Stablecoins to Central Bank Digital Currencies

Posted by hkarner - 27. September 2019

By Tobias Adrian and Tommaso Mancini-Griffoli

As privately issued stablecoins continue to encroach on more traditional forms of money—like cash and bank deposits—policymakers will not simply look on from the sidelines. They will arbitrate. Their rules and actions will determine how we will eventually pay for everyday items like a cup of coffee, and, more importantly, will affect the structure and risks of our financial sector.

Our last blog introduced stablecoins—cryptographic tokens that can be easily exchanged, benefitting from minimal price volatility relative to cash. Consumers might quickly adopt these new, cheaper, faster, and more user-friendly services integrated into their social media platforms. However, these also come with notable risks that require prompt regulatory action.

The world of fiat money is in flux, and innovation will transform the landscape of banking and money.

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The Coming Currency War: Digital Money vs. the Dollar

Posted by hkarner - 24. September 2019

Date: 23-09-2019
Source: The Wall Street Journal

Central banks are getting closer to issuing their own digital currency. If they do, the dollar might finally face real competition as the world’s dominant currency

The future of money might be a digital version of the cash that’s already in people’s wallets—potentially upending the currency system that the world has known for many decades.

Such a future, of course, might be a disappointment to many libertarians and tech-savvy investors who are pinning their hopes (and in some cases their money) on private cryptocurrencies such as bitcoin. Den Rest des Beitrags lesen »

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Blackrock CIO: The Endgame Is Coming And Central Banks Will Debase Everything To Spark Inflation

Posted by hkarner - 10. September 2019

Date: 06-09-2019
Source: https://www.zerohedge.com

Blackrock’s Chief Investment Officer, Rick Rieder, best known perhaps for recently suggesting that the ECB should monetize stocks, writes in the Blackrock blog today and highlights the economic policy state-of-play today, and where it may lead to should economic growth falter, productivity not materialize, and populism continue to thrive.

* * *

The major global central banks continue to draw bigger guns in their battle against deflation, yet in some places, it appears to be of no avail. The fact is that the share of sovereign yields that are in negative territory keeps increasing and the average level of these interest rates becomes ever more negative. Further, quantitative easing (QE) purchases of sovereign debt have transitioned to purchases of corporate debt, and in some places equities; with inflation still elusive and improved growth prospects in question. That all leads one to wonder where (and how) these policies end? What is today’s monetary policy endgame?

Turn to economic history for perspective Den Rest des Beitrags lesen »

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Economists and central bankers unite in grumbling about Donald Trump

Posted by hkarner - 30. August 2019

Date: 27-08-2019
Source: The Economist Free exchange

But in some ways, the president brought them together at their yearly gathering

AS THE ANNUAL meeting of central bankers and economists at Jackson Hole, a mountain resort in Wyoming, began on August 23, two participants made a bet. Would President Donald Trump tweet about the opening remarks of Jerome Powell, the chairman of the Federal Reserve, within 45 minutes of their publication? In the event, it took the president 57 minutes. That night the victor enjoyed his winnings—a glass of whiskey—in the bar.

Mr Trump’s words made the conference theme, “challenges for monetary policy”, uncomfortably timely. He called Mr Powell anenemy and promised to ramp up trade tensions with China further. Later that day he announced increases in tariff rates on over $500bn of Chinese imports. But even as stockmarkets reeled, the conference continued serenely. Indeed, Mr Trump even brought the participants together.

Most obviously, they were united in grumbling about the effects of his trade policy on the global economy. Philip Lowe, the governor of the Reserve Bank of Australia, said that business uncertainty was turning political shocks into economic ones. Mark Carney, the governor of the Bank of England, said that trade tensions had raised risk premiums, tightening financial conditions. Den Rest des Beitrags lesen »

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Whither Central Banking?

Posted by hkarner - 26. August 2019

Anna Stansbury

Anna Stansbury is a PhD candidate in Economics at Harvard University.

Lawrence H. Summers, US Secretary of the Treasury (1999-2001) and Director of the US National Economic Council (2009-2010), is a former president of Harvard University, where he is currently University Professor.

In an environment of secular stagnation in the developed economies, central bankers’ ingenuity in loosening monetary policy is exactly what is not needed. What is needed are admissions of impotence, in order to spur efforts by governments to promote demand through fiscal policies and other means.

CAMBRIDGE – The world’s central bankers and the scholars who follow them are having their annual moment of reflection in Jackson Hole, Wyoming. But the theme of this year’s meeting, “Challenges for Monetary Policy,” may encourage an insular – and dangerous – complacency.

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The Right Response to the Libra Threat

Posted by hkarner - 6. August 2019

Co-Pierre Georg

Co-Pierre Georg, an associate professor at the University of Cape Town School of Economics, holds the South African Reserve Bank Research Chair in Financial Stability Studies.

Katharina Pistor is Professor of Comparative Law at Columbia Law School and the author of The Code of Capital: How the Law Creates Wealth and Inequality.

Facebook’s plans for a digital currency and payments system have understandably been met with skepticism, bordering on outrage. Clearly, if a serial violator of the public trust can unilaterally insinuate itself into the global monetary system, something must be done to manage the rise of digital private monies.

NEW YORK – Facebook’s a new digital currency, Libra, within a year has won few friends. Regulators, policymakers, and academics reacted to the news swiftly, and for the most part skeptically. US congressional committees quickly arranged hearings, and the issue featured prominently at the G7 meeting in France last month.

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attac fordert elektronisches Zentralbankgeld für alle

Posted by hkarner - 13. Juli 2019

Monetative e.V. 12/07
Die Bundes-AG Finanzmärkte und Steuern von attac fordert in ihren aktuellen „Vorschlägen zur Regulierung der Finanzmärkte“ auf Seite 5 unter anderem folgendes:
Jeder Bürger hat Anspruch auf ein kostenfreies Konto bei der Zentralbank. Das dort gelagerte Geld ist elektronisches Zentralbankgeld und damit gleichwertig zu Bargeld.“
In der dazugehörigen Pressemeldung „Mit Facebook-Geld droht völlige Privatisierung des Geldes  wird diese Forderung weiter konkretisiert. In der attac-Sommerakademie in Bochum wird am 1. August eine Kampagnenidee mit dem Namen „Das Geld gehört uns- das Girokonto mir“ präsentiert und ausgearbeitet. Gerne rufen wir dazu auf, bei der Ausarbeitung dieser Kampagne mitzuarbeiten (Anmeldung bis zum 24.7.) und werden diese als Verein Monetative e.V. auch nach Kräften unterstützen! Den Rest des Beitrags lesen »

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Five Facts on Fintech

Posted by hkarner - 28. Juni 2019

By Tobias Adrian and Ceyla Pazarbasioglu

From artificial intelligence to mobile applications, technology helps to increase your access to secure and efficient financial products and services.

Since fintech offers the chance to boost economic growth and expand financial inclusion in all countries, the IMF and World Bank surveyed central banks, finance ministries, and other relevant agencies in 189 countries on a range of topics and received 96 responses.

A new paper details the results of the survey alongside findings from other regional studies, and also identifies areas for international cooperation—including roles for the IMF and World Bank—and in which further work is needed by governments, international organizations, and standard-setting bodies.

Foremost in all countries’ minds is cybersecurity.

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Unconventional Thinking about Unconventional Monetary Policies

Posted by hkarner - 13. Juni 2019

Barry Eichengreen is Professor of Economics at the University of California, Berkeley, and a former senior policy adviser at the International Monetary Fund. His latest book is The Populist Temptation: Economic Grievance and Political Reaction in the Modern Era.

Defenders of central-bank independence argue that quantitative easing should have been avoided last time and is best avoided in the future, because it opens the door to political interference with the conduct of monetary policy. But political interference is even likelier if central banks shun QE in the next recession.

KONSTANZ – The policy interest rates of advanced-country central banks are stuck at uncomfortably low levels. And not just for the moment: a growing body of evidence suggests that this awkward condition is likely to persist. Inflation in the United States, Europe, and Japan continues to undershoot official targets. Measures of the “natural” rate of interest consistent with normal economic conditions have been trending downward for years.

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