France pitches radical joint EU borrowing plan to pay for defense (POLITICO)
By Bjarke Smith-Meyer · Mar 20, 2024 BRUSSELS ― The French government is pushing for the European Union to issue joint debt to pay for increased military spending and is pitching the radical idea to its European counterparts, according to a confidential letter seen by POLITICO. In the diplomatic note, likely to spark fierce opposition […]
In the Blind Spot (Death by financialisation, Boeing edition)
Our one-stop source for central banking & monetary policy news. SNEAK PEEK — Why Boeing is just another example of an industrial giant coming unstuck because of financialisation. — Ireland’s renewed Celtic Tiger boom is not what it seems. — Dario digs into the new trade routes being opened up by the thawing […]
Look away: the ECB is about to change its rules of engagement (POLITICO)
By Geoffrey Smith · Mar 12, 2024 ECB policymakers will meet on Wednesday outside of the framework of their usual monetary policy meetings to decide the technical details about how the central bank should operate in the post-QE era. All the signalling from the ECB suggests they don’t want markets to read too much into […]
In the Blind Spot (The economic costs of reopening old war wounds)
Our one-stop source for central banking & monetary policy news. SNEAK PEEK — We take a closer look at what exactly constitutes the bulk of the Russian assets under Western control and explain why this matters. — Russian propaganda takes the denazification claim beyond Ukrainian borders. Dario provides the relevant context. — Dario finally gets […]
ECB sees no fault in Elderson’s mission to ‘train’ staff minds on climate (POLITICO)
By Geoffrey Smith · Mar 6, 2024 The European Central Bank (ECB) is refusing to back down in a row with staff over perceived “disrespect” by top management toward staff. Earlier this week, the bank’s staff committee wrote to President Christine Lagarde to protest at comments at an internal event last month, where board member […]
Asset purchases won’t exclusively mean ‘easing’ for much longer (POLITICO)
By Johanna Treeck, Carlo Boffa · Mar 6, 2024 FRANKFURT — Since large-scale liquidity operations became the norm, markets have become accustomed to treating asset purchases of any sort as a signal that authorities are in monetary easing mode. But that is set to change. Central bank liquidity is now in retreat, which means the […]
ECB eyes floor system with ample liquidity for its new framework (POLITICO)
By Johanna Treeck · Mar 1, 2024 FRANKFURT – European Central Bank policymakers are approaching a “broad consensus” on a new way of steering short-term interest rates and, indirectly, the eurozone economy, people familiar with the discussion told POLITICO. According to central bank officials, the ECB will maintain a so-called “floor system” where “ample” central […]
Critics blast outgoing SNB chief for maintaining bank’s opaque structures (POLITICO)
By Ben Munster · Mar 5, 2024 The acclaimed 12-year run of Switzerland’s retiring central bank governor was tainted by autocratic processes enabled by the opaque decision-making structures of the Swiss National Bank, three prominent economists have said. Thomas Jordan unexpectedly announced Friday that he plans to leave the Swiss National Bank (SNB) in September, […]
In the Blind Spot (A Weekend of Mistakes in Hay-on-Wye)
Our one-stop source for central banking & monetary policy news. SNEAK PEEK — Izzy gives an update from Hay on Wye’s Weekend of Mistakes. — This week’s big blind spot argues CBDCs won’t be able to handle authorised push payment fraud. — Dario takes a deep dive into what exactly the UAE’s land deal with […]
EU plans to create war-ready defense-industrial complex (POLITICO)
By Jacopo Barigazzi, Laura Kayali, Joshua Posaner · Feb 27, 2024 BRUSSELS — The EU wants to shift its defense industry onto a war footing, laying out its plan in a 27-page draft of a European Defence Industry Strategy seen by POLITICO. A few of the most far-reaching proposals made during the consultation process — […]