TheMoneyIllusion

A slightly off-center perspective on monetary problems.

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The ECB cut its IOR to minus 0.5%; it should have been minus 50%

September 16, 2019

Facebook Twitter Google+ LinkedIn The ECB should stop playing around with negative interest rates and simply put a prohibitive tax on excess reserves (something I proposed in 2009). If a small amount of excess reserves are needed to clear interbank balances, then exempt a modest amount of bank reserves from the negative... Read More >>
Other Posts

More on Trump and trade


Facebook Twitter Google+ LinkedIn This Politico story caught my eye: President Donald Trump’s top advisers are rushing to find an escape hatch for... Read More >>

My new Mercatus paper on IOR


Facebook Twitter Google+ LinkedIn I have a new Mercatus policy brief discussing interest on bank reserves. Here’s an excerpt: After the Fed adopted... Read More >>

Land of bridges and tunnels


Facebook Twitter Google+ LinkedIn Guizhou is a relatively poor province in southwestern China, with lots of long tunnels and high bridges. And... Read More >>

Bullard on the Fed’s policy reappraisal


Facebook Twitter Google+ LinkedIn St. Louis Fed President James Bullard recently had some interesting comments in response to this question: What will policymakers... Read More >>

Five facts about China


Facebook Twitter Google+ LinkedIn I just returned from 8 interesting days in Guizhou, and I’ll do a longer post on my trip... Read More >>

Random notes


Facebook Twitter Google+ LinkedIn 1. The FT on Boris, pt. 2 A few days ago, I said this: Imagine a Democratic president with dictatorial... Read More >>

What’s fueling the rise in anti-Chinese hysteria?


Facebook Twitter Google+ LinkedIn How do Americans form their views of China? I see two possibilities: 1. They look at Chinese behavior,... Read More >>

Rococo revival in Tianjin


Facebook Twitter Google+ LinkedIn Ten years after my previous trip to Tianjin, I returned for a second time. This time my primary... Read More >>

The FT on Boris


Facebook Twitter Google+ LinkedIn If you thought things were bad in the US, consider the UK. Here’s the FT: If Mr Johnson’s... Read More >>