central bankers

central banks incompetence

The Sin Of Central Bankers

Francesco Saraceno | According to Wren-Lewis, central banks were not involved in the push towards fiscal consolidation, and their “only” sin was of not being vocal enough. I think he is too nice. At least in the Eurozone, the ECB was a key actor in pushing austerity.

What central bankers have forgotten

July 10, 2015 | By Benjamin Cole via Marcus Nunes’ HistorinhasAs a lot, central bankers are not entrepreneurs or real estate developers, and are very risk-averse, and are minutely concerned with the strict control of prices (as measured) as opposed to robust prosperity.

No Picture

ECB bound to act

MADRID | By JP Marín Arrese | Central bankers would be ill-advised to cave in to pressure from the markets. Yet, the ECB can hardly resist the urgent need to implement a fully-fledged QE programme involving sovereigns. Anything less could end-up sparking a period of vicious turmoil as Syriza seems poised to win the upcoming elections in Greece and the oil market continues to tumble into utter disarray. Such a grim outlook requires drastic action. Would it solve all the current problems? There are plenty of reasons to doubt it.

Do Aussie central bankers have a “good enough” solution?

Benjamin Cole via Historinhas The Reserve Bank of Australia (RBA) shoots for an “inflation band” of between 2 percent and 3 percent, and the Aussie economy (as recently illustrated here by Marcus Nunes) has been among the best-performing following the 2008 Great Recession. Could it be that simple? Should central banks merely shoot for a somewhat flexible and slightly higher inflation target? Worth noting is the People’s Bank of China has overseen much prosperity with a 4 percent inflation target.

Scatterbrained Central Bankers

SAO PAULO | By Marcus Nunes via Historinhas | Recently I showed this chart [see above] to press the point against the conventional wisdom that the purpose of the sequence of QEs was to lower long term rates.