Holger Zschaepitz @Schuldensuehner
(https://twitter.com/Schuldensuehner/status/965243339804237824)
Central Banks are the biggest creditors of their nations. Bank of Japan holds almost 50% of outstanding govt bonds. #ECB holds 25% of outstanding bonds, could rise to 28%, acc to Goldman Sachs.
2018 ots. 18
(https://twitter.com/billy_blog/status/965344993413021697)
Bill Mitchell(e)k Bertxiotua Holger Zschaepitz
We are on the way to Overt Monetary Financing and not before time. Next step is to stop issuing the bonds altogether http://bilbo.economicoutlook.net/blog/?p=34071
Bill Mitchell(e)k gehitu du,
Holger Zschaepitz @Schuldensuehner
Central Banks are the biggest creditors of their nations. Bank of Japan holds almost 50% of outstanding govt bonds. #ECB holds 25% of outstanding bonds, could rise to 28%, acc to Goldman Sachs.
2018 ots. 18
ooooooo
Bill Mitchell-en ondorioa, segituan
Conclusion
But the preferred option, from a MMT perspective, is the option the Voxeu authors claims “comes with a heavy price”.
That ‘heavy price” is that the central bank would not pay any support rate on excess reserves and accept that the short-term interest rate would drop to zero.
Monetary policy is really such a blunt and ineffective tool that it should be rendered redundant. The mainstream have never provided a convincing case that manipulating interest rates is somehow the preferable and effective option for stabilising the spending cycle.
The GFC experience would suggest otherwise. All the monetary policy gymnastics have had very little impact.
It would be much better to set the overnight rate at zero and leave it there and allow the longer term rates (which are impacted by inflation risk) settle as low as possible.
Then, manage the spending cycle with fiscal initiatives that can be targetted, adjusted fairly quickly and which have direct impacts.
The “heavy price” the Voxeu authors fear would be nothing more than exposing that the emphasis (reliance) on monetary policy is just an ideological stunt to allow the neo-liberals to push fiscal policy into the undesirable basket.
OMF would bring this ideological crusade further out into the public arena and sink it once and for all.
ooooooooooo
Hauei erantzuten: @billy_blog @jabmorris
Great piece Bill 
Gogoratu ondoko hauek:
Politika monetarioa efektiboa izateko, batera lan egin behar du politika fiskalarekin
