To remove a data series, either click on its legend label or the line on the chart. Remove as many series as you want to get a better understanding for how balance sheet items interact. This is in beta, so it may be a bit buggy. Expect redraw delays.
Wednesday, May 1, 2013
Play with the interactive ECB balance sheet tool
For the full version, go here. The chart below only includes Eurosystem assets, not liabilities. It goes back just a few years. The full version goes back to 2000 and includes liabilities.
To remove a data series, either click on its legend label or the line on the chart. Remove as many series as you want to get a better understanding for how balance sheet items interact. This is in beta, so it may be a bit buggy. Expect redraw delays.ECB Balance Sheet Tool
To remove a data series, either click on its legend label or the line on the chart. Remove as many series as you want to get a better understanding for how balance sheet items interact. This is in beta, so it may be a bit buggy. Expect redraw delays.
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JP,
ReplyDeleteWondering if you could give any insight on the MMT idea of "tax backed bonds" for Europe. It at least seems like an interesting and creative proposal.
"Tax-backed bonds would be similar to standard government bonds except that they would contain a clause stating that if the country issuing the bonds does not make its payments—-and
only if the country does not make its payments
-—the tax-backed bonds would be acceptable to make tax payments within the country in question, and would continue to earn interest."
http://www.scribd.com/doc/87105577/Pilkington-Mosler-Tax-Backed-Bonds
When the fundamental value of a bond falls below face value of €1000 everyone will try to use them to pay €1000 worth of taxes. They are only so many taxes that need to be paid, so the remaining bonds will fall to a discount to face value.
DeleteCorporations attach convertibility options to the bonds they issue all the time (see retractible bonds).
"When the fundamental value of a bond falls below face value of €1000 everyone will try to use them to pay €1000 worth of taxes"
DeleteWell, I think the key part of the proposal is that the govt wouldn't allow this except in the special circumstance that a bond payment was missed. So it wouldn't be acceptable for taxes in normal years (also, these don't seem like retractable bonds either; the bond holder would have no power to force early redemption, or acceptance in lieu of tax payments, on the govt).
"They are only so many taxes that need to be paid"
This would only seem to be a problem if the stock of these bonds issued exceeded the govt's annual tax liabilities. Perhaps the govt could: a) limit the issuance of these bonds to a certain % of bond sales; or b) have some sort of electronic notification system where only the first X number of bonds would be accepted, on a first come basis? (I'm reaching here, but it seems like it could work).
Anyway, I'm not an enthusiastic supporter for this idea, but I have to give outside-the-box thinking credit to MMTers. It does seem like a complicated proposal, so I thought, "What about offering bonds with an option clause? (i.e. allowing deferred payments) But such bonds would be less desirable than normal bonds, and thus the int. rate offered would have to be higher; that wouldn't help the PIIGS.
But these bonds, having the option to be used as tax payments, would seem to be more desirable than normal bonds, and thus the int. rate offered would be lower. Am I missing anything?