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Tag Archives: central bank independence

“Unabhängigkeit der Nationalbank (Independence of the SNB),” FuW, 2020

Finanz und Wirtschaft, July 25, 2020. PDF. Von verschiedenen Seiten werden Ansprüche an den Gewinn der Nationalbank gestellt. Es sollte in der Kompetenz der SNB liegen, zu entscheiden, welchen Teil ihrer Bilanz sie nicht zur Erfüllung ihrer Aufgaben benötigt. Die Europäische Zentralbank ist Kritik gewohnt. Immer wieder sieht sie sich mit dem Vorwurf konfrontiert, ihre Kompetenzen zu überschrei­ten. Dabei spielt die Diskussion über monetäre Staats­finanzierung eine...

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“Monetäre Staatsfinanzierung mit Folgen (Monetary Financing of Government),” Die Volkswirtschaft, 2020

Die Volkswirtschaft, 24 July 2020. PDF. Clarifying the connections between outright monetary financing, QE, the distribution of seignorage profits, the relationship between fiscal and monetary policy, and central bank independence. Abstract: Wenn Parlamentarier höhere Gewinnausschüttungen der Nationalbank fordern, Kritiker im Euroraum mehr «Quantitative Easing» oder Helikoptergeld verlangen und andere Stimmen monetäre Staatsfinanzierung monieren, dann steht die...

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How the Bank of Canada’s balance sheet went from $118 billion to $440 billion in eight weeks

Ever since the coronavirus hit, the Bank of Canada's balance sheet has exploded. In late February its assets measured just $118 billion. Eight weeks later the Bank of Canada has $440 billion in assets. That's a $320 billion jump! To put this in context, I've charted out the Bank of Canada's assets going back to when it was founded in 1935. (Note: to make the distant past comparable to the present, the axis uses logarithmic scaling.) The rate of increase in Bank of Canada assets far exceeds...

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Central Bank Accountability, Independence, and Transparency

By Tobias Adrian and Ashraf Khan Español, Português In August 1694, the Bank of England opened for business with a staff of 19. The original Royal Charter, granted by King William and Queen Mary, tasked the Bank to “promote the public Good and Benefit of our People.” As a private company, its independence from the government was not then contemplated. Though it would eventually come—some 300 years later—when, in May 1997, the British government gave the Bank operational independence over...

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Should governments finance themselves through their central bank?

In places like the U.S. and Europe, it is actually difficult—if not impossible—for a government to have its central bank pay for government programs. All government spending must be financed by issuing bonds to the public or collecting taxes. Canada, my home country, is an interesting counter-example. The financial relationship between the Federal government and the Bank of Canada—our central bank—is fairly permeable. The government has the authority to ask the Bank of Canada to directly...

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Electronic money will only save central banks from subjugation if it is anonymous

50 SEK banknote issued by the Riksbank in 1960 "Do we need an eKrona?" asks Stefan Ingves, the Governor of the Riksbank, Sweden's central bank. The Riksbank is probably the central bank that has advanced the furthest in discussions surrounding the introduction of a central bank-issued digital currency (CBDC)—a new form of risk-free digital money for use by the public. Canada, New Zealand, Australia, the ECB, and China are also dissecting the idea, with more central banks to come in...

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The People’s Bank of China: Monetary Policy in a Time of Transition

by iMFdirect Today at the IMF, the Governor of the People’s Bank of China, Zhou Xiaochuan, gave the Michel Camdessus Central Banking Lecture in Washington, D.C. With China’s economy undergoing a transition, Governor Zhou spoke about managing monetary policy with multiple objectives, and the independence of central banks. “For central banks with a single objective, it is relatively easy to be independent. However, if a central bank has multiple objectives, it may be harder to be immune...

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