Tag Archives: Monetary Economics

ECB Market Intervention: The Securities Market Programme (SMP)

Update: As of September 6th, 2012, the SMP was discontinued and the assets held in its accounts were transferred assimilated by the Outright Monetary Transactions (OMT) accounts. For a preliminary assessment of the OMT, please check this blog post. Otherwise, … Continue reading

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Leverage and Balance Sheet Management: Reserve Ratios and VaR

Having previously considered how banks intermediate between investors and their investments, FRB and bank runs, and having shown that overlending is likely to be an equilibrium result of the financial market, I now turn my attention to how banks, among … Continue reading

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Week Ahead Calendar: 20/01/2012 to 27/01/2012 – Schedules and Hopes

Please find below a list of the eventful days ahead. The main sources are Unicredit’s Weekly Focus, Forex Trading weekly calendar, the EU’s national issuance calendar and many others,  all of which I advise you to consult directly. I found Unicredit’s to … Continue reading

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Asymmetries of Information, Overlending and the Output gap

I have recently discussed Banking intermediation, FRB and bank-runs in the context of the Diamond 1997 model in line with my effort to understand the banking/financial sector and record some of the knowledge I acquired over the years. When, in … Continue reading

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The end (of the crisis) is nigh! – On treaty change and Lenders of Last Resort

Another week and another bout of hysteria, as banks warn about the risk of a Euro-breakup due to the upcoming banking crisis. May be that’s to over do it, but clearly it increases the ever unquantifiable risk of that happening. … Continue reading

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ECB Monetary Policy Tools – A brief review

Central Banks (CBs) have at their disposal an large range of weaponry they can use to (try to) tame the economy. Given the geographical focus of this blog I will consider only the European Central Bank (ECB) and the monetary … Continue reading

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Jp¥-€-US$-Cn¥ monetary axis

Barry Eichengreen has recently published a book called “The Exorbitant Priviledge“, about the rise and fall of the US$’s priviledged role in world economic affairs, its coming fall from grace and what it means to the USA and to the … Continue reading

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