Depuis le début de la crise Covid-19, un débat a émergé sur la possibilité d’annuler les dettes publiques détenues par les banques centrales. Bien que la proposition soit faisable techniquement, notre analyse stratégique révèle que les efforts nécessaires pour gagner de telles campagnes seraient très importants, alors que ses gains potentiels sont incertains et plus faibles qu’on ne le pense.
By clarifying that “the ECB will neither run out of liquidity nor fail”, Christine Lagarde has put an end to the irrational logic according to which central banks could go bankrupt.
Since the outbreak of the Covid-19 crisis, a debate has emerged on whether we should write off public debts owed to central banks. Despite its technical feasibility, debt cancellation is not the first-best proposal to fight for.
Last year we recommended a few books to enjoy during the summer break. You seemed to eat up those recommendations, so we decided to add a few more should you need some reading inspiration for summer 2020!
A global network of economics students involving 27 universities across 11 countries is calling on their universities to teach them the truth about banks. They are now supported by 57 economists and organisations who signed an open letter.
The 2008 financial crash made clear how the workings of the financial world were not just technical matters for experts, but political questions that could upturn whole societies. In an age of climate crisis where the social consequences of 2008 are still being felt, central banks are in uncharted territory and having to rethink money in relation to society itself.