Mario Draghi says ECB is open to asset purchase to battle low inflation
The current concern of the ECB these days is illustrated below: The ECB is having a hard time controlling interest rates!
The upward trend and volatility of the interbank rate reveals a failure to control the market interest rate using policy rates.
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In two recently released videos, the Bank of England (BoE) explains what fiat money is and what monetary policy means.
This is good progress in the understanding of monetary operations, especially in the light of conventional wisdom having inspired a number of erroneous interpretations during the banking and financial crisis.
However, more progress is desirable, notably with respect to the following statements written in boldface. I will explain why, at the end of this post.
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This is a comment by Jörg Bibow, my former colleague at Franklin, on the latest Quarterly Report on the Euro Area produced by the European Commission and its economic nonsense.
The notion that “cutting the ECB deposit rate into negative territory — that is, charging banks to hold money at the ECB instead of paying them — could push them to lend” is a mistaken, yet popular view.
This is a Q&A on the subject:
