- India’s payments revolution
- Treating stablecoins like ETFs
- A history lesson on why we need central banks
- BIS: Moving fast and stablising things
- Is Libra really the world’s most ambitious international settlement system?
- Zuckerbuck vs PayPal vs China
- A G7 stablecoin report that tells it how it is
- Suddenly Facebook’s Libra is all about defending “the Free World” from China
- Libra is imperialism by stealth
- France says it won’t allow Libra in Europe
- ECB board member slams “cartel-like” Libra
- Facebook fights back against Libra criticism
- Libra myth-busting (video)
- Nick Clegg: “I'm not just providing a PR gloss”
- A pound of flesh for your Libra inclusion
- Why closed-loop systems like Libra won't change the world
- Facebook's Libra will not help the unbanked
- Facebook’s Libra: blockchain, but without the blocks or chain
- What exactly is Facebook's Libra Reserve?
- Alphaville's Libra cheat sheet
Or when theories of money collide with trendy digital fads.
- China’s PMI print doesn’t mean much
- Let’s flatten the coronavirus confusion curve
- NMC Health: presented without comment
- When “commission-free trading” isn’t (really) free
- Michael Milken: financial innovator
- Oh no, the death-techers are coming
- Bitcoin’s “halvening” won’t boost its price
- CEO of JPM, recipient of $bns in state aid, bashes socialism
- Trump just made a joke about negative rates
- The Witcher is not a freelancer
- The ITV M&A fantasy
- Blockchain, all over your face
- Baillie Gifford: pot kettle black
- Is Facebook’s status as the bête noire of political advertising justified?
- The Eurosystem might have a fatal flaw. But it’s not this
- Venture capital for the ‘forgotten’
- The troublesome Trump inside trading claim
- The US economy is not recession-proof
- Hedge fund bro gonna hedge fund bro
- What do women want? Some crypto flavoured mansplaining, apparently.
In this guest post, Marcello Minenna, the head of Quantitative Analysis and Financial Innovation at Consob, the Italian securities regulator, argues that reforms to the European Stability Mechanism can pave the way for Eurobonds. The views expressed here are his personal opinions and do not necessarily reflect the views of Consob.
Target2 balances reflect euro area’s potential to be better than traditional exchange rate peg regime
Think of it within the context of the balance of payments as foreign exchange reserves that can never be depleted.
There are lots of good reasons to study history, but perhaps the best is to avoid being misled by people who claim to have “learned the lessons” from the past when they don’t actually know what they’re talking about. For example, the policy mistakes exacerbating the euro crisis may have been partly caused by a profound misunderstanding of the causes of the French Revolution. The thought occurred to us while reading The Euro and the Battle of Ideas, an intriguing new book we reviewed in this weekend’s FT. Two of the authors, Markus Brunnermeier and Harold James, are academics at Princeton. The third, Jean-Pierre Landau, was Deputy Governor of the Banque de France from 2006-2011 after a long career in the French Treasury and the International Monetary Fund. Consider the following passage, from pages 256-7 in the hardcover, emphasis ours:
Fresh from the inbox, first from Goldman: We expect the BoE to implement policy actions aimed at maintaining market functioning (in difficult circumstances), by activating swap lines with other major central banks and by announcing additional liquidity operations, including the provision of term funding for UK banks.
The replacement of market funding with increasingly concessional loans from the “official sector” may have reduced the Greek government’s balance sheet debt by as much as €200bn, yet the headline numbers haven’t captured any of this alleged gain. In our previous post we looked at whether this was reasonable, focusing on several sets of accounting guidelines to see how they might apply to Greek sovereign obligations: International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), the European System of Accounts (ESA 2010), and Eurostat’s Manual on Government Deficit and Debt (MGDD).
Ashtead and Crest Nicholson have built some strong profits from the construction sector, Premier Farnell has agreed to a £615m Swiss takeover. FT Opening Quote, with commentary by City Editor Jonathan Guthrie, is your early Square Mile briefing. You can sign up for the full newsletter here.