Will Europe’s new TPI be an ATM?
It has finally arrived. The European Central Bank has launched a Transmission Protection Instrument (TPI) to prevent monetary policy fragmentation within the eurozone.Announced just after the ECB...
Central banks are still far behind inflation curve
Major central banks have lost the plot when it comes to fulfilling their price stability mandates. In April, the 12-month US consumer price index (CPI) inflation was at 8.3%, down slightly from 8.5%...
Fiscal capture at the ECB
Since the second quarter of 2021, inflation in the United Kingdom, the United States, and the eurozone has far exceeded their central banks’ 2% target. This surge could well be explained by the...
Pricing existential risk
Since the start of Russia’s attack on Ukraine, much has been written about the increased risk of nuclear annihilation and its impact (or lack thereof) on stock-market valuations. But, leaving aside...
An Argentinian haircut for the IMF
Argentina is about to enter another dysfunctional stand-by agreement with the International Monetary Fund — its 22nd SBA since it joined the IMF in 1956. While the details have not yet been settled,...
Outlaw cryptocurrencies now
The price of Bitcoin has undergone yet another wild gyration, rising from $41,030 on September 29, 2021, to $69,000 on November 10, 2021, before falling back to $35,075 on January 23. That is its...
The case against green central banking
One way or another, central banks’ behaviour will have to change with the climate. But it should evolve only because climate change will create new constraints and drive new forms of public and...