….Another topic that is often misunderstood is the role of the central banks. What are they, who operates them, how do they operate and do they actually create money, or tax credits?
They are the scorekeeper for the currency and the government’s fiscal agent. They have a spreadsheet, and they put in debits and they open accounts for the member banks and for foreign governments. When the government spends, they put credit into the appropriate account. When it taxes, they debit the appropriate account. They also regulate and supervise the banking system to some degree.
They’ve also been given the job of determining the appropriate interest rate. There’s no such thing as the market determining rates. In a floating exchange rate, the natural rate of interest is zero, and it’s up to the government, if it wants to support a higher rate, to take action to do that. That comes in the form of either paying interest on balances at the central bank, interest on reserves or selling treasury securities, which are just interest-bearing accounts at the central bank…..
- Eeapooletu ajakirjandus
- Modern Money and the Obsession Over Fiscal Consolidation
- Roy Jenkins and Tony Benn debate : The European Communities membership referendum, 1975 – Panorama
- Drain Le Swamp
- Put your pussy hats on
- Brexit: the end of an error
- Joan Muysken Lecture: “The Eurozone, Groupthink and denial on a grand scale”
- On ikka kuradi fašistid
- How many poor?
- Ajastule sobivat muusikat
- Public Debt In The Eurozone: A Political Problem
- Šoti vasakpoolsed natsionalistid tahavad Šotimaast kreekasarnast EL-i kolooniat teha
- Trump Saltmining Inc.
- Poland warns of disunity across the EU after Donald Tusk re-elected European Council president
- Trump on keeldunud Reagani majanduspoliitikast
- Head rahvusvahelist naistepäeva
- Kohutav, Taani kannatab täistööhõive ja tõusvate palkade käes
- Euro saatus otsustatakse tõenäoliselt Itaalias
Seda blogi vaadatud (60 sek hilinemine)
- 197,953 korda