The UK’s Competition and Markets Authority (CMA) has been investigating the low level of competition between banks in the UK. They released their provisional findings today, but backed away from any measures that would enable true competition. As we warned in our initial submission to the Commission, it’s an illusion to think that switching between four large and almost identical banks is true competition. We argued that there’s much greater chance of real competition if tech firms are allowed to compete with banks to provide current accounts to individuals and businesses. But the CMA’s recommendations do nothing to enable that.
What did you feel when you understood the full implications of the fact that banks create money out of nothing?
Translation of the original German article on helicopter money by Michaël Malquarti, senior vice-president at Geneva-based SYZ Asset Management, published in German in the Neue Zürcher Zeitung on 16th of February 2015. An abbreviated version of the article was published in French in the Le Temps. Republished with permission from the author.
An awkward stand off has emerged amongst some of the World’s leading monetary policy-makers. On the one hand, the IMF has warned central bankers that in the face of low growth and deflation, increasing interest rates and stopping QE risks triggering another global crisis. On the other, a group of central bank governors countered the IMF’s stance, cautioning their policymaking peers that they risked precipitating the next crisis by extending the period of ultra loose monetary policy.