If you are not happy with the results below please do another search
It’s been a while since I’ve written down my impression of what is going on and what is happening with New Zealand – because things are just not changing. The events in Europe continue to have a significant impact on what is going on in New Zealand, both by lowering businesses willingness to invest in […]
With bond yields collapsing in Europe the implied “bank run” on the periphery appears to be over. This is due to the ECB backstopping European banks for the next three years – in some sense they have taken on the lender of last resort role, just in a confusing, seemingly temporary, and poorly communicated way. […]
I fully endorse Krugman’s point here: These alleged technocrats have in fact systematically ignored both textbook macroeconomics and the lessons of history in favor of fantasies. The European Central Bank has placed its faith in the confidence fairy, while imagining that it can run policy in a way that has never worked in several centuries […]
After negotiating a sizable haircut on Greek debt and pushing through an expansion in the EFSF we have seen markets rally. The current crisis has very much been one of people wondering “who the hell will bear the burden of default”. The closer we get to solving that question, the closer we get to putting […]
This piece from Vox Eu provides a good run down of one of the issues of that exists when we have a central bank as a lender of last resort – moral hazard. The prospect of receiving liquidity support may distort banks’ risk-taking incentives to a much larger extent than has been acknowledged up to […]
Quite. (ht Marginal Revolution) The issues in Europe remain the most concerning thing for me at the moment – the US has a large drought and a weak patch, but at least we don’t have to ask if their central bank has the ability to always act as a lender of last resort. The fact […]