Post by account_disabled on Mar 10, 2024 23:54:48 GMT -5
Paul de has just published an interesting article on entitled “Monetary policies that do not subsidize banks” The article begins by explaining the importance of the sum of money that the European Central Bank is going to transfer to commercial banks as a result of remunerating their deposits at the European Central Bank. Specifically, this year the is going to transfer some 92.000 million euros to the banks. And it is not a loan that commercial banks have to repay, but a non-refundable amount that will go directly into the banks' income statement. As De points out, this matter is transcendental because it will mean that transfers from the to the States will be reduced million euros. This amount is 0,75% of GDP and therefore, paribus, the countries of the Eurozone will be forced to cut their spending and/or increase their taxes euros if they do not want their public deficit to increase by a 0,75% of GDP. Paul de asks himself three questions. First, why should commercial banks be remunerated for holding liquid reserves at the central bank? Second, is this remuneration necessary to conduct monetary policy? Third, are there alternative policy procedures that avoid making large interest payments to banks? The article is interesting for two reasons.
In the first place, because it proposes a monetary policy alternative that would avoid increasing bank profits at the expense of public budgets. But it is also interesting because it focuses on the study of the subsidies that commercial banks receive in the current system. In fact, this subsidy to banks is one more to add to the long list of direct and indirect subsidies from the States to deposit institutions that I published in my book "Goodbye to Banks" (specifically in chapter 1 under the heading titled “Inventory of protections and privileges Phone Number List of bank deposits”). Now, most of the works on public and secure money - CBDCs and, in particular, the digital Euro - are focused on aspects such as privacy or the choice of the best technologies. But as soon as the digital euro exists, public opinion will realize that most of the subsidies and privileges to banks wrote before, the presidency is a political exercise that must be accompanied by great responsibility. This will be the fifth time that Spain assumes this and this opportunity. The last presidency took place in 2010. In the political inflection everyone must unite, the Government, the opposition, parties of all , citizens of all parties. Also entities from all sectors: business, financial, academic, media. Our country has a great opportunity to work so that our European semester bears fruit.
So that the challenges of the EU begin their inflection in positive. Ascending political inflection means that the integration process is strengthened and that Spain assumes its European presidency together. Political inflection means that our constitutional model permeates our parliamentary debate. The sequence of municipal, regional and general elections in 2023, with an eye on the 2024 European Parliament elections, will mark the Spanish Presidency of the Council of the EU. We must all be vigilant and feel that the European political inflection curves upward and begins to take off. will not be necessary because the digital euro does not have the problems of instability and lack of competition that bank deposits cause. It is still early, but reading this article encourages us to start asking a fourth question: once we have digital money that is a risk-free asset, what justification will there be for maintaining the subsidies, privileges and protections of bank deposits? Paul De Grauwe is one of the few academic economists who dares to question some aspects of the current monetary and banking system. In a world in which “copy and paste” abounds, which reiterates that what exists is rational, his reflections are appreciated, in which he usually raises how things could be better than what they.
In the first place, because it proposes a monetary policy alternative that would avoid increasing bank profits at the expense of public budgets. But it is also interesting because it focuses on the study of the subsidies that commercial banks receive in the current system. In fact, this subsidy to banks is one more to add to the long list of direct and indirect subsidies from the States to deposit institutions that I published in my book "Goodbye to Banks" (specifically in chapter 1 under the heading titled “Inventory of protections and privileges Phone Number List of bank deposits”). Now, most of the works on public and secure money - CBDCs and, in particular, the digital Euro - are focused on aspects such as privacy or the choice of the best technologies. But as soon as the digital euro exists, public opinion will realize that most of the subsidies and privileges to banks wrote before, the presidency is a political exercise that must be accompanied by great responsibility. This will be the fifth time that Spain assumes this and this opportunity. The last presidency took place in 2010. In the political inflection everyone must unite, the Government, the opposition, parties of all , citizens of all parties. Also entities from all sectors: business, financial, academic, media. Our country has a great opportunity to work so that our European semester bears fruit.
So that the challenges of the EU begin their inflection in positive. Ascending political inflection means that the integration process is strengthened and that Spain assumes its European presidency together. Political inflection means that our constitutional model permeates our parliamentary debate. The sequence of municipal, regional and general elections in 2023, with an eye on the 2024 European Parliament elections, will mark the Spanish Presidency of the Council of the EU. We must all be vigilant and feel that the European political inflection curves upward and begins to take off. will not be necessary because the digital euro does not have the problems of instability and lack of competition that bank deposits cause. It is still early, but reading this article encourages us to start asking a fourth question: once we have digital money that is a risk-free asset, what justification will there be for maintaining the subsidies, privileges and protections of bank deposits? Paul De Grauwe is one of the few academic economists who dares to question some aspects of the current monetary and banking system. In a world in which “copy and paste” abounds, which reiterates that what exists is rational, his reflections are appreciated, in which he usually raises how things could be better than what they.