tag:blogger.com,1999:blog-2546602206734889307.post8255488351730241359..comments2024-03-28T04:29:22.717+00:00Comments on mainly macro: Does the Dutch central bank employ any macroeconomists?Mainly Macrohttp://www.blogger.com/profile/09984575852247982901noreply@blogger.comBlogger34125tag:blogger.com,1999:blog-2546602206734889307.post-18557167413229362322014-01-28T03:42:25.348+00:002014-01-28T03:42:25.348+00:00Demand draft (DD) fraud typically involves one or ...Demand draft (DD) fraud typically involves one or more corrupt bank employees. Firstly, such employees remove a few DD leaves or DD books from stock and write them like a regular DD. Since they are insiders, they know the coding, punching of a demand draft. Such fraudulent demand drafts are usually drawn payable at a distant city without debiting an account. The draft is cashed at the payable branch. The fraud is discovered only when the bank's head office does the branch-wise reconciliation, which normally take six months, by which time the money is irrecoverable.<br /><a href="http://Reorder-checks.net" rel="nofollow"> order bank checks </a>emilyharriehttps://www.blogger.com/profile/18285950153464051017noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-11153101935437295502013-07-26T13:32:43.057+00:002013-07-26T13:32:43.057+00:00A banker suggested to me that "people are jus...A banker suggested to me that "people are just going to have to get used to a lower standard of living". Except of course that "people" doesn't include those expounding all this nonsense. custom check designshttp://reorder-checks.netnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-79069048723305051162013-06-14T23:09:44.898+00:002013-06-14T23:09:44.898+00:00Members have routinely violated and continue to vi...Members have routinely violated and continue to violate that 3% obligation. There are no procedures in place to expel offending countries. Continued membership is a decision solely within the purview of Dutch politicians. <br /><br />As for clearly correct, it's not clear at all. In this situation any attempt at balancing the budget will only depress the economy, reduce taxes collected, cause more spending to handle unemployment and might even trigger the need for costly bank bailouts (which would really blow a hole in the deficit). Letting things be could well be the superior way to handle deficits, and so the central bank can in clear conscience agree no cuts and new taxes need to be implemented. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-16879377354791135792013-06-14T10:36:35.871+00:002013-06-14T10:36:35.871+00:00The Dutch Central Bank is just giving the governme...The Dutch Central Bank is just giving the government advice that its forecast suggests that the Netherlands will be in violation of its obligations under EU's excessive deficit procedure.<br /><br />It is only requesting that the Netherlands take action to comply with EU laws that it has signed. I see absolutely nothing unusual in this, there are only two possible course of action it could recommend deficit reduction measures or withdrawal from the Euro -as members of the Eurozone are legally obliged to have deficits under 3%. Of the two options the Central Bank's economists are clearly correct in arguing that additional deficit reduction measures are less disruptive and therefore preferable to a change of currency. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-62634664749592657852013-06-14T08:12:33.592+00:002013-06-14T08:12:33.592+00:00This is class warfare, that's it. The minority...This is class warfare, that's it. The minority in power like the feeling of being relatively more reacher than the majority of the population. Let us start to think that elites want to maximize status, not utility.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-21677115435759187722013-06-14T05:38:55.012+00:002013-06-14T05:38:55.012+00:00Have a look at the Rabo Bank's research of rou...Have a look at the Rabo Bank's research of roughly a week ago on this.<br />They make a 'product' of their solution. Probably the first decent piece of research I have seen from them, usually it is utterly poor.<br /><br />You should have noticed by now that just the idea of spending more simply doesnot catch with anybody (except the people that directly benifit from it). Riknoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-18803851885270999912013-06-13T21:01:58.532+00:002013-06-13T21:01:58.532+00:00Unfortunately you got these types of central banke...Unfortunately you got these types of central bankers all over Europe. A while back I caught Erkki Liikanen, chief of Bank of Finland, giving some gobbledygook about debt levels. It would have been bad enough if he was merely harping on about how the government should balance the budget, but he then went on to display his total lack macroeconomic knowledge by worrying about the general debt levels. He wanted all sectors of society to reduce their debts. Which is impossible without export growth (is Nokia off the sickbed yet? No? Well, Finland's f'd then). Next he got too clever by half when he tried to bamboozle us with some great counter intuitive truth by pointing out that after WW2 the overall global debt levels were lower. Golly gee, now why would that be so? Perhaps because governments essentially moved most of private sector and household debts onto its balance sheet, an incidental Keynesian boon from funding the war?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-47134062286663847542013-06-13T11:37:51.284+00:002013-06-13T11:37:51.284+00:00The world does have too much debt, which built up ...The world does have too much debt, which built up during the credit boom of 2003-2008. The debt is mainly owed by households and firms, who have too little income to service it, and must save over time.<br /><br />Assuming no export boom, the natural thing to happen is for this private saving to be offset by government borrowing. It is not a solution to the contraction, but a natural stabilizer. The real recovery will only come when the private sector is done deleveraging, and growth returns. But to say that the government should do nothing, or actively cut those naturally occurring deficits... well, that self-immolation is arguably unnecessary and "artificial", in the sense that it moves the "natural level" of the bottom down, down, down, down.<br /><br />Then the IMF and the EC will say: "Congratulations, you cut your deficit (all the way to Depression, 27% unemployment and economic collapse!)"UberDavenoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-14607530794549905872013-06-13T08:03:34.428+00:002013-06-13T08:03:34.428+00:00Why is nobody addressing the weird rationale that ...Why is nobody addressing the weird rationale that making people jobless (which is the result of spending cuts) is an answer to a period of too much borrowing. If we owe too much, lets all work harder. I do not see where the rationale comes from for: We owe too much, lets work less. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-10685613586236980022013-06-13T07:58:08.303+00:002013-06-13T07:58:08.303+00:00Free markets: finally the freedom to sell slaves a...Free markets: finally the freedom to sell slaves and have children working for you. You would love that would you? If not, please think some more about the concept of economic freedom. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-89863280671715808692013-06-13T01:30:26.609+00:002013-06-13T01:30:26.609+00:00Ok - my bad. I took the term "Dutch Central B...Ok - my bad. I took the term "Dutch Central Bank" to imply that if the Netherlands had its own Central Bank, then it had not joined the Euro. <br /><br />So I guess this raises the question, if the Dutch Central Bank isn't actually in charge of the currency, to what extent is it a real central bank? It seems that once you're part of the Eurozone there's really only one central bank, the ECB, and everyone else is just there for support.<br /><br />In light of that, I'm not sure why austerity in such a country is especially unforgivable. True, a nation without control of its own monetary policy can't rely on the monetary authority to offset austerity measures. However, a country without its own monetary policy also can't rely on the central bank to bankroll its deficits. Basically, once you give up control of your currency, you're in a tight spot no matter what.<br /><br />That said, maybe the Netherlands is different than the crisis countries. For one thing, the Netherlands has a current account balance. My guess would be this gives the Netherlands more room to run deficits, and makes internal devaluation less of a concern. Thus, maybe in the Netherlands case a burst of stimulus might be enough to get their economy and budget back into balance. Maybe. <br /><br />In any case, it seems the main problem remains with the Eurozone is the ECB's reluctance to do anything about austerity. Still, I suppose the Dutch Central Bank isn't helping.AYhttps://www.blogger.com/profile/03089913366320889389noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-74435119090891246322013-06-13T00:30:51.562+00:002013-06-13T00:30:51.562+00:00I think what Cantab83 is getting at is the "w...I think what Cantab83 is getting at is the "without" part of the quoted sentence. <br /><br />The Netherlands is a country WITH it's own monetary policy. That's why it's inexcusable to resort to austerity. (It's still a bad idea in the Eurozone, but national governments can be somewhat forgiven since they have no choice). I think this may just have been a typo on Wren-Lewis's part.<br /><br />AYhttps://www.blogger.com/profile/03089913366320889389noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-53305837048582348032013-06-12T23:12:40.838+00:002013-06-12T23:12:40.838+00:00Tax increases have been the bulk of austerity and ...Tax increases have been the bulk of austerity and that is the mistake when the burden on the private sector is too large (Europe and many others). Austerity via spending cuts is what most of Europe needs as they are having a sovereign DEBT problem in economies with bloated government. When you have borrowed too much and your credit rating is at risk and/or been cut, you must reduce borrowing but don't do it by increasing taxes. Literally 80% of the austerity in Greece and Portugal was from the revenue side. It is no wonder why their economies tanked. A healthy private sector is the answer not more government spending. If you have borrowed too much, you are going to have pain and you can choose to take a little now or a lot later. Look at Latvia that went through a massive austerity with teacher wages cut as much as 40%; they have had credit upgrades and are growing. They have restored some of the wage cuts. Ireland leaned towards spending cuts and is doing better. Greece and Portugal increased taxes on the private sector and killed their economies.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-31984803086003008182013-06-12T20:59:17.407+00:002013-06-12T20:59:17.407+00:00Sugar Lover, for my own sense of faith in humanity...Sugar Lover, for my own sense of faith in humanity, I hope you're a trollAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-30254555352953215032013-06-12T16:51:42.659+00:002013-06-12T16:51:42.659+00:00The ECB did a lousy job on inflation since for 12 ...The ECB did a lousy job on inflation since for 12 years it allow an inflation in Germany close to 1% and in the South around 2.8%. That is the only reason for the difference in competitive power in Germany and the South. That it achieved an average 2% as agreed in the Maastricht treaty has no meaning, since it is a meaningless average. If you sitting on a hot stove with your feet in ice water your average temperature might also be good, but you feel lousy.Anonymoushttps://www.blogger.com/profile/03499394705782625757noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-6358165414501574232013-06-12T16:36:08.294+00:002013-06-12T16:36:08.294+00:00It's important to remember that bankers view a...It's important to remember that bankers view austerity as moral payback for years of excessive credit, and that view is now entrenched. A banker suggested to me that "people are just going to have to get used to a lower standard of living". Except of course that "people" doesn't include those expounding all this nonsense. Their indifference to mass unemployment and poverty is frankly chilling. To the extent there is any intellectual justification for austerity's effects, the usual old tropes about voluntary or structural unemployment are wheeled out. It's all very depressing.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-62729864546526745912013-06-12T16:11:00.181+00:002013-06-12T16:11:00.181+00:00"One day the whole world will be like the Eur..."One day the whole world will be like the Eurozone, the sooner the better."<br /><br />You mean one day everyone will be using a currency with obvious flaws which hamper economic growth in its member states?<br /><br />I doubt it. I'll keep my dollars, thank you. <br /><br />John Redmondnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-61066814762128972902013-06-12T15:53:39.877+00:002013-06-12T15:53:39.877+00:00I smell Austerian Economics.
Go to Somalia with i...I smell Austerian Economics.<br /><br />Go to Somalia with its unregulated economy and leave the civilized world in peace. Now.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-2139433406575116552013-06-12T15:52:07.054+00:002013-06-12T15:52:07.054+00:00"It's an approach that you may find frigh..."It's an approach that you may find frightening, but best get used to it, it's here to stay."<br /><br />I think this is unlikely in countries that have elections. The idea that economies "adjust" to the real world, and are not OF the real world is, to be kind, anti-empirical.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-19307494345925271252013-06-12T15:48:31.783+00:002013-06-12T15:48:31.783+00:00The price level in teh EUrozone is now some 10% be...The price level in teh EUrozone is now some 10% below where it should be if the ECB targeted 2% inflation. How is that stability?<br />http://marketmonetarist.files.wordpress.com/2012/08/euro-gdp-deflator.jpg<br /><br />1/NGDP is the proper measure of the value of money, in which case the ECB has presided over a devastating deflationary shock. That is not "price stability". Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-75239042001194822162013-06-12T15:42:53.288+00:002013-06-12T15:42:53.288+00:00Well SugarLover I'd be all for an experiment i...Well SugarLover I'd be all for an experiment in completely free markets if the wealth accumulated by the few was evenly redistributed to make sure this experiment in completely "free markets" is done in a way that ensures the accuracy of the results.<br /><br />And secondly once all of the western democracies prohibit the influence of our elected leaders with money.<br /><br />But if we can do that I would be interested in seeing if these vaunted "free market" solutions would solve all of the world's problems. Other than that doing what you are calling for now is just a massive advantage being given to the people who have the most...and isn't that what you free marketeers are all about?John (Libertine)https://www.blogger.com/profile/16629202206475554261noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-22800264173489587532013-06-12T15:35:09.907+00:002013-06-12T15:35:09.907+00:00Let me know how you feel when you lose your job.Let me know how you feel when you lose your job.Anonymoushttps://www.blogger.com/profile/13006746540638401157noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-74588253981769702912013-06-12T15:30:05.817+00:002013-06-12T15:30:05.817+00:00Don't get me started on those filthy collectiv...Don't get me started on those filthy collectivists. With their elected officials, their laws, their justice systems, their ceaseless efforts to avoid violent revolution...mattskihttps://www.blogger.com/profile/07936264188400397646noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-11552858941186335022013-06-12T15:21:44.223+00:002013-06-12T15:21:44.223+00:00One thing to remember: the mandate/target of the D...One thing to remember: the mandate/target of the Dutch central bank is not growth, but financial stability. Given that the Netherlands is one of the core EMU countries (and that Wim Duisenberg was one of the fathers of the ECB) they probably feel compelled to adhere to the Maastricht Treaty, even if some/most of their staff would agree that budget cuts lead to lower growth. What is surprising, however, is that DNB is giving (quite specific) economic policy advice to the government (which is not their job), especially in the same week in which the CPB releases their own forecast.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-59944856479342779972013-06-12T14:49:48.128+00:002013-06-12T14:49:48.128+00:00A natural level of massive unemployment, misery an...A natural level of massive unemployment, misery and revolution. Sounds great Anonymousnoreply@blogger.com