TARGET2 – Window on Eurozone Risk

* This paper can also be downloaded in PDF format here.   By JKH Introduction About a year ago, a blogosphere debate erupted over TARGET2, the inter-central bank payment system for the Eurozone. Ground zero for that discussion was a blog post by Hans-Werner Sinn, followed by a more comprehensive paper: http://www.voxeu.org/article/ecb-s-stealth-bailout http://www.cesifo-group.de/portal/pls/portal/docs/1/1210631.PDF Sinn’s argument wasRead More

Monetarism Unplugged

There’s a considerable backlog of interesting material related to the April, 2012 Krugman/Keen blogosphere debate on banking. Market monetarist Bill Woolsey wrote an intriguing piece on banks and monetary policy, somewhat under the radar to the main discussion. I don’t know if it was prodded by the K/K debate, but it may well have been:Read More

JKH on the Recent MMR/MMT Debates

By JKH (This document can also be read in PDF format here) Introduction A recent round of blogosphere debates between some of those associated with MMR (Modern Monetary Realism) and some MMT (Modern Monetary Theory) enthusiasts examined the question of the nature of saving in economics and finance. As part of that discussion, an equation appearedRead More