A Post-Keynesian ECB, Part II

Real-World Economics Review Blog

From: Erwan Mahé (guest post)

In our latest Thaler’s Corner, last Friday 6 June, we examined the impact of the ECB’s lowering of benchmark interest rates (see PDF, attached), but, as we pointed out, that was hardly the only noteworthy decision the central bank made last Thursday! Today, we will explain how these measures make perfect sense when taken together and how they flow directly from a programme based on the principles of a modern currency. We leave aside for the time being its role of fiscal watchdog that it persists in playing, although such a role does not fall within its mandate and is totally counterproductive. Before going into these points, I would just like to comment on the latest statement by Bank of France chief and ECB governor, Mr Noyer, this Monday in Montreal.

ECB Noyer: Liquidity Regime Off-Balance Sheet Equivalent To QE

Although he…

View original post 1,766 more words

Author: Damian Merciar

Damian Merciar is Managing Director of Merciar Business Consulting, http://www.merciar.com, a niche business economics consultancy founded in 1998. He has over twenty years experience in the areas of commercial Business Strategy. He is experienced in the transition environments of nationalized to private sector state utilities and the senior practice of commercial management, advisorial consultancy, and implementation. He has carried out policy advisory work for government ministries and been an adviser to institutional bodies proposing changes to government. He holds an MSc Economics from the University of Surrey’s leading Economics department and an MBA from the University of Kent. Also attending the leading University in the Middle East, studying International Relations and Language, for which he won a competitive international scholarship, and has a BA (Hons) in Economic History and Political Economy from the University of Portsmouth. He is currently based in London.

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