Assets held by central banks have exploded since 2008. As interest rates rise, some of those institutions are slipping into the red. We’re told normal accounting rules do not apply. However, losses erode inflation-fighting credibility and independence, argues Edward Chancellor.
Buyout firms thrived in the era of low interest rates and deregulation. Both of those factors are coming to an end, argues Edward Chancellor. Higher financing costs and tighter rules suggest a future of depressed investment returns.
In the 1930s, economists drew up a radical blueprint to create safer banks. The advent of digital currencies issued by central banks is an opportunity to revisit the idea, writes Edward Chancellor. A shift could stabilise banking, reduce inflation, and even lower government debt.