Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘Central Banks’

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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How central banks should prepare for the next recession

Posted by hkarner - 1. Juni 2019

Date: 30-05-2019
Source: The Economist

They must change their targets and find new tools—while avoiding a populist takeover

It has been a decade since America’s latest recession, and it has taken that long for the Federal Reserve to ask itself whether it is ready for the next one. On June 4th officials and scholars will gather in Chicago to debate how monetary policy should work in a world of low interest rates. The benchmark rate is 2.25-2.5%, which gives the Fed little room to cut before hitting zero—and less than half as much as it has needed in past downturns. As if to remind policymakers that rock-bottom rates are here to stay, the ten-year Treasury yield fell below 2.3% this week. Other central banks, many of which preside over still lower rates and weaker economies, are looking to the Fed for inspiration. Den Rest des Beitrags lesen »

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How not to weaken central banks’ independence

Posted by hkarner - 13. April 2019

Date: 11-04-2019
Source: The Economist: Free exchange

Why Stephen Moore and Herman Cain are poor picks for the Fed

There are more than a few echoes of the Nixon era in the presidency of Donald Trump. Monetary reverberations are among them. Facing re-election in 1972, Richard Nixon felt he needed a strong economy at his back, and made a habit of haranguing Arthur Burns, the chairman of the Federal Reserve at the time. Burns recounted the meetings in his diaries: “The president looked wild; talked like a desperate man; fulminated with hatred against the press; took some of us to task…” Historians reckon Burns was too accommodating of Nixon’s demands, and so helped launch the inflation of the 1970s. Mr Trump is now waging his own assault on the Fed’s independence. He has repeatedly complained about the central bank’s decisions and urged it to take a more doveish stance.

More strikingly Mr Trump, who has already chosen three of the five sitting members of the Fed’s board of governors, has named Stephen Moore and Herman Cain to fill the remaining two vacancies. In contrast to candidates who have come before, both are political activists. But the parallel with the 1970s is less apt than it seems. There are different ways to politicise monetary policy, and Mr Trump’s is particularly poisonous. Den Rest des Beitrags lesen »

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The Global Economy: A Delicate Moment

Posted by hkarner - 10. April 2019

By Gita Gopinath

A year ago, economic activity was accelerating in almost all regions of the world. One year later, much has changed. The escalation of US–China trade tensions, needed credit tightening in China, macroeconomic stress in Argentina and Turkey, disruptions to the auto sector in Germany, and financial tightening alongside the normalization of monetary policy in the larger advanced economies have all contributed to a significantly weakened global expansion, especially in the second half of 2018.

With this weakness expected to persist into the first half of 2019, our new World Economic Outlook (WEO) projects a slowdown in growth in 2019 for 70 percent of the world economy. Global growth softened to 3.6 percent in 2018 and is projected to decline further to 3.3 percent in 2019. The downward revision in growth of 0.2 percentage points for 2019 from the January projection is also broad based. It reflects negative revisions for several major economies including the euro area, Latin America, the United States, the United Kingdom, Canada, and Australia.

After the weak start, growth is projected to pick up in the second half of 2019. This pickup is supported by significant monetary policy accommodation by major economies, made possible by the absence of inflationary pressures despite growing at near potential. The US Federal Reserve, the European Central Bank, the Bank of Japan, and the Bank of England have all shifted to a more accommodative stance. China has ramped up its fiscal and monetary stimulus to counter the negative effect of trade tariffs. Furthermore, the outlook for US–China trade tensions has improved as the prospects of a trade agreement take shape. Den Rest des Beitrags lesen »

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Italy’s Populists Covet Central Bank and Its Gold

Posted by hkarner - 4. April 2019

Date: 03-04-2019
Source: The Wall Street Journal

Blaming the institution for the woes of ordinary Italians, lawmakers pursue a takeover

Some Italian politicians want to force the bank’s shareholders, mostly private banks, to sell their shares to the treasury.

ROME—Italy’s ruling populists pushed ahead this week with efforts to seize control of the central bank and its gold reserves, stepping up their confrontation with a symbol of the country’s establishment.

With two laws targeting the Bank of Italy under debate in parliament, the campaign is the latest attack on Italy’s independent institutions by leaders of the governing coalition, which is led by the antiestablishment 5 Star Movement and the nativist League.

The parties depict the central bank as a symbol of a technocratic elite aloof from the needs of ordinary Italians. Hundreds of thousands of small individual investors lost billions of dollars after several Italian banks failed in recent years, causing widespread anger against the Bank of Italy and previous governments. Den Rest des Beitrags lesen »

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China’s Quiet Central Banking Revolution

Posted by hkarner - 11. März 2019

Miao Yanliang

Miao Yanliang is a member of China Finance 40, a Beijing think tank.

Since Yi Gang became governor in March 2018, the People’s Bank of China has improved its communications, boosted its transparency, and moved toward a flexible exchange rate. Although the PBOC has plenty of room for further improvement, its progress so far is good news for China and international policymakers alike.

BEIJING – Fifteen years ago, Alan Blinder, a former vice chair of the US Federal Reserve System and a longtime professor of economics at Princeton, wrote a book entitled The Quiet Revolution about changes in central banking. Chief among these was a move by some central banks toward open communication and transparency, and away from their long-held tradition of secrecy and surprise. A central bank “goes modern,” to borrow from the subtitle of Blinder’s book, when it starts talking.

The Fed was slowly heading in this direction by the turn of the century. It finally began announcing its interest-rate decisions in 1994, and started issuing regular press releases in 2000 (though it did not hold regular press conferences until 2011). These changes reflected a new appreciation among central bankers of how changes in short-term policy rates work their way through the economy via expectations and market pricing. Den Rest des Beitrags lesen »

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A threat to the independence of Italy’s central bank

Posted by hkarner - 16. Februar 2019

Date: 14-02-2019
Source: The Economist

The country’s populist leaders alarm European bankers

The bank of italy has long been seen as one of a handful of efficient and incorruptible institutions that curb Italy’s anarchic tendencies. But on February 9th this august establishment came under fire from the two deputy prime ministers who call the shots in the populist government that is nominally led by Giuseppe Conte, the prime minister. Matteo Salvini, who leads the hard-right Northern League, said he wanted to “reboot” the senior management at both the central bank and the stockmarket regulator, Consob. Luigi Di Maio of the Five Star Movement (m5s) demanded “discontinuity”. Both alleged the Bank had failed to protect investors and deposit-holders. Two days earlier, the cabinet had refused to approve a further six-year term for Luigi Federico Signorini, the deputy director-general primarily responsible for banking supervision.

The attack sent ripples of apprehension through the euro zone amid media stories that the populist coalition wanted to get its hands on the Bank’s gold reserves, the third-largest of any country, to fund its expansionary fiscal policies. The president of the Eurogroup of finance ministers, Mario Centeno, and the eu commissioner for economic affairs, Pierre Moscovici, both pointedly stressed the need to preserve the independence of central banks in the single currency area.

On an optimistic interpretation, the threats were perhaps not meant to be taken too seriously. The coalition leaders’ remarks were addressed to a very specific audience: an assembly of stakeholders who lost money when two banks in the Veneto region were liquidated in 2017. The government has promised partially to reimburse them. But eu rules on state aid could yet prevent that. Inveighing against the central bank enabled the party leaders to win plaudits from an unhappy audience. Den Rest des Beitrags lesen »

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