Special
The ECB is in a unique position to fundamentally strengthen the eurozone and support the fiscal policies of its member states. But everything depends on a successful bond issuance by the ECB.
Special
Due to structural deficits on the US current account, its net external investment position is close to minus 100% of GDP. In a world, in which China is promoting the international use of the renminbi, this may have consequences for the position of the dollar.
Special
The issuance of securities by a central bank is a very market friendly instrument of open market operations, which already is used by many central banks all over the world. Now that the ECB faces the challenge of reducing bank liquidity with as little as possible disturbance of financial markets, it might also consider to issue ECB-securities. This would bring two advantages.
Special Dutch version
The international position of the euro is under pressure. The introduction of a digital euro, especially when this can be used for international transactions, will strengthen the position of the euro.
Special Dutch version
This special answers some questions around the Bitcoin. Bitcoin will probably not be very successful as a means of payment. It is too unstable, too slow and too opaque. However, the Bitcoin could survive in the long run as a high risk asset class.
Special
The ECB has acquired a large part of the public debt of EMUs member states. This debt has lost its monetary significance. It would be a big mistake of future fiscal policy doesn't take this into account.
Special
The European Commission presented a recovery fund for the EU. Although there a quite some hurdles to be taken, a compromise does not look out of reach. The pooling of liabilities is further completes the European capital market.
Special
The ECB could use Central Bank Securities to mop up liquidity. The use of this instrument may bring the additional advantage of the creation of a EMU-wide ‘safe asset’. This may bring advantages for the stability of the Eurozone.
Special
EMU is vulnerable and must be strengthened. Much is possible within the current legal framework. Banking Union (incl. EDIS) must be completed and it is essential to create a pan-EMU safe asset. Moreover, the ECB needs more effective instruments.
Special Dutch version
The US dollar has been the global anchor currency since 1944. This gives the US certain advantages, but it also brings negative consequences for international stability. The global economy needs a new anchor, independent from an individual country.
Special Dutch version
With a thought experiment we show how Italy could fall out of the Eurozone ‘by accident’. Many wrong policy decisions appear necessary to reach that point. So the risk that it will happen is extremely low.
