OMFIF’s most read 2020: Digital currency and the new cold war, US unprepared for money supply boom
The year’s top stories: Digital currency cold war
By David Birch in London
Just as the US Treasury was mailing out physical stimulus cheques, the People’s Bank of China began beta testing a national digital currency in four cities. Economists will look back on these counterpoints as the start of the digital currency era. The contrast brings into focus the ‘new cold war’. Along the Belt and Road, not only might digital currency be acceptable, it could be highly beneficial to trade and prosperity.
(First published: 07/09/2020)
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The year’s top stories: US not ready for money boom
By Chris Papadopoullos in London
Money crosses borders with ease. Theories about money have a harder time. US monetary economics focuses on the central bank balance sheet. The focus of British monetary economics is on the balance sheet of the entire banking system. US policy-makers prefer to look at the labour market rather than monetary aggregates, with the two currently giving opposing signals. The US could find itself with high inflation, but with neither the theory nor data to manage it.
(First published: 19/06/2020)
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