QE is debt reduction
QE is not a liability transformation - it is debt reduction
The remuneration of bank reserves has been a source of significant analytical confusion among economists. This arcane technicality matters far more t...
Policy needs to pivot post-lockdown
Post-lockdown the economy will need a different kind of stimulus
The role of monetary and fiscal policy during lockdown was to sustain household and corporate cashflows in the face of an intentional freezing o...
Helicopter money as Covid response
Here are my slides from the Rebuilding Macro workshop on helicopter money....
Macro policy proposals – immediacy is the metric
Policy response (updated)
Tax rebates for corporates & households, zero interest rates on mortgage and corporate loan refinancing, no debt capital repayment, targeted lending & QE, dual rates, yield cappin...
Draghi’s historic farewell
This week’s policy decision by ECB is historic. For some time now, a number of economists have suggested that dual interest rates are the logical next step in the arsenal of central banks. Dual interest rates r...
Reply to Larry Summers
An ‘Either-Or’ approach to fiscal and monetary policy is mistaken
Larry Summers has delivered a pointed and sweeping critique of the prevailing consensus among central bankers. He rightly asserts that relian...
The Prudence Principle: a new rule for fiscal policy
Should the government run a budget deficit or a budget surplus? What size should the deficit or surplus be?
Devising a rule which allows the public to assess the integrity of government is a major challenge...
Dual interest rates always work
The future of monetary policy - Dual interest rates
The significance of dual interest rates remains under-appreciated. The European Central Bank, Bank of Japan, and the Bank of England’s facilities are by fa...
Presentation on dual interest rates
PM Europe roundtable...
It’s time for the ECB to use its monetary power
Eurozone growth has stalled and inflation is below the ECB’s definition of price stability. As the recent actions of ECB make clear, further monetary easing is necessary for the ECB to fulfil its mandate.
Un...