An Advantage Of Bitcoin – Escaping Government Mismanagement Of Money

This is of course the great promise of Bitcoin and crypto, that by not using government issued money one can escape the manipulations and mistakes of government issued money. That is though an argument for private money, or even competing currencies, not one necessarily for this specific technological solution. On the other hand, government might lose the ability to manipulate money and thus lose monetary policy:

Monetary policy in a world of cryptocurrencies
Pierpaolo Benigno 26 April 2019

Cryptocurrencies have attracted the attention of consumers, policymakers and the media.…

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Will Central Banks Ever Adopt Bitcoin?

That there might be an interesting use or two of the blockchain part of Bitcoin technology is true. The jury’s still out on it and the market will, in the fullness of time, tell us. But should central banks be getting in on the act? Issuing a digital currency of their own perhaps? Hmm, well, depends what you’re after really:

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Central bank digital currencies and private banks
David Andolfatto 17 March 2019

The idea of a central bank digital currency has prompted a mixed reaction among economists.…

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Surprise, Eh? The ECB Is A Pretty Useless Central Bank

As observers have noted the European Central Bank managed to do everything late and little in response to the financial crash. Which is a pit as the European Project is driven by an insistence that the technocrats know best, something not greatly in evidence here:

The ECB’s performance during the crisis: Lessons learned
Ashoka Mody, Milan Nedeljkovic 14 January 2019

The ECB’s actions in the wake of the Global Crisis have been described as hesitant, relative to other central banks.…

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World Bank Insists Modern Monetary Theory Is A Load Of Old Tosh

This is not quite what the World Bank comes out and says directly but it is something that’s easy enough to derive from its current warnings – Modern Monetary Theory is a load of old tosh. Hey, maybe we could put that in more formal terms but the basic and underlying thought, insistence even, is that we cannot trust the politicians to act as MMT says they must therefore MMT isn’t going to work.

Pity, but there we are, for MMT does describe what actually happens in parts of the monetary system entirely faithfully.…

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Central Bankers Abhor A Vacuum

“An economy” might be described as the description we slap on our attempts to allocate useful and scarce resources – and the scarcer and more useful they are, the more money is usually demanded in exchanged for them.

So prices are how we measure this scarcity and usefulness.

With free markets, these prices are discovered by the consumers – they propose how much of their money they are willing to swap for a given product or service, and the producers that can make a profit at that price, prosper.…

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