The German Bundesbank has recently released an interesting report on the role of banks, non-banks, and the central bank in the money creation process. We have a few issues with the Bundesbank article; however, the majority of the analysis is good. More importantly, the conclusions drawn from the report by news outlets and the blogosphere are misleading.
Conference on monetary reform hosted jointly by the Icelandic Prime Minister’s Office and KPMG Iceland
On Monday the 5th of September at 8:30AM, the Icelandic Prime Minister’s Office (PMO) and KPMG Iceland will jointly hold the conference “Money Issuance – alternative monetary systems” to mark the publication of a KPMG report, commissioned by the PMO.
Last week the Bank of England released a key paper that analyses the 'macroeconomics of central bank issued digital currencies'. The paper essentially asks what would happen if people could hold money electronically at the central bank, instead of having to use bank deposits (created by commercial banks). We wrote about it briefly last week but we're still working through the fine details of the 69-page mathematical model to figure out the implications for our work. In the meantime, the Bank of England's staff blog has just released a much more accessible discussion of the issues: