Search Results for: OMT bluff

A while ago I posted this, explaining how I thought that OMTs were an almighty – if so far successful – bluff.  The reasoning being that the promise is to buy whatever quantity it takes to eliminate a gap between … Continue reading →

Last Summer, the ECB stemmed the panic in peripheral sovereign debt markets with a promise.  The promise was to undertake ‘Outright Market Transactions’;  purchases of short-term debt issued by troubled sovereigns, from secondary markets, in quantities not limited at the … Continue reading →

This post responds to recent interventions by Paul de Grauwe, which I think put up interesting counter-hypotheses to the position of the German constitutional court, essentially supporting the ECB, but don’t undermine their case. To recap on my previous posts … Continue reading →

Simon Wren Lewis responds to my post about [his post on] the extent to which we can pin the ultimate blame for the Eurozone crisis on bad German economics. He sympathises somewhat with the notion that prior to the Euro, … Continue reading →

Simon Wren Lewis [here and here] pulls together his critique of the role of German economics in the Eurozone crisis. The Eurozone institutions had  3 flaws. First, the ECB was [at least initially] prevented from acting as a lender of … Continue reading →

Some disorganised thoughts about what is going on. It baffles me why Krugman/Paul Mason and others on Twitter view the referendum as logical, or a masterstroke.  It will be a referendum on an out of date document.  That was not … Continue reading →

The FT carried reports of the oddest central bank Governor speech I have ever encountered.  Koruda likened the BoJ’s recent quantitative easing policy to a confidence trick.  One that would fail as soon as people stopped believing, just like Peter … Continue reading →

Simon Wren Lewis has a string of posts explaining what he describes as several ‘myths’ of ‘mediamacro’, and contrasting that with how he sees the true narrative of the financial crisis and the different governments’ conduct during it. I want … Continue reading →

Much is being made of the ECB Governing Council’s debates about whether it would ever be prepared to do Quantitative Easing, buying outright member state sovereign bonds.  Draghi and a majority seem in favour of it, but not yet.  It … Continue reading →

A short post substantiating my tweet yesterday asserting this, which was picked up by the Guardian, but, all on its own, to those not swimming in this stuff, might look rather odd. We could think of an ECB purchase of … Continue reading →