Monthly Archives: February 2013

Will the Brits go negative?

A little over a year ago, I argued that the Federal Reserve should consider charging banks for the privilege of holding their reserves.  The reasoning for this is straightforward: charging interest on banks (instead of paying interest, as the Fed … Continue reading

Posted in Financial Crisis, monetary policy | Tagged , , , | 1 Comment

Greece is downgrading itself

On December 19 Standard and Poor’s raised its rating of Greek sovereign debt by six notches, to B-minus from selective default. The government’s decision to prosecute a statistician indicates that the upgrade was premature. According to S&P, the ratings change … Continue reading

Posted in government budget, Uncategorized | Tagged , , | Leave a comment