Markets: The dangerous politics of central banks | The Economist

According to the Economist, central banks are now major creditors of western governments, guarantors of the financial system, set the cost of borrowing, potentially control access to housing finance (via macroprudential policy) and, at the ECB, mediating between the claims of creditor and debtor governments.

Source: Markets: The dangerous politics of central banks | The Economist

This is a first rate article. But what would we do if the central banks sat on their hands, certainly we couldn’t wait for political leaders to act?

Thoughts

European Commission – PRESS RELEASES – Press release – European Commission welcomes Eurogroup agreement on a three-year ESM stability support programme for Greece

This is a historic announcement. It’s worth a read. Check it out!

via European Commission – PRESS RELEASES – Press release – European Commission welcomes Eurogroup agreement on a three-year ESM stability support programme for Greece.

I wish Greece the best of luck. The path ahead will be very painful but perhaps not as painful as a Grexit. So on balance, for me, it’s the right decision.

Thoughts?

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