Confessions of a Supply-Side Liberal

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Electronic Money: The Powerpoint File


The Bank of Japan in Tokyo

UPDATE October 19, 2014: Here is a link to the most recent version of “Breaking Through the Zero Lower Bound”—the version I presented at New York University on October 17, 2014. 

I decided to replace some miscellaneous updates with this unified list of places I have presented and am slated to present this seminar (leaving out the multiple times I have presented it to different audiences at the University of Michigan):

  • Bank of England, May 20, 2013
  • Bank of Japan, June 18, 2013
  • Keio University, June 21, 2013
  • Japan’s Ministry of Finance, June 24, 2013
  • University of Copenhagen, September 5, 2013
  • National Bank of Denmark, September 6, 2013
  • Ecole Polytechnique (Paris), September 10, 2013
  • University of Paris, September 12, 2013
  • Banque de France, September 13, 2013
  • Federal Reserve Board, November 1, 2013
  • US Treasury, May 19, 2014
  • European Central Bank, July 7, 2014
  • Bundesbank, July 8, 2014
  • Bank of Italy, July 11, 2014
  • Swiss National Bank, July 15, 2014
  • Princeton University, October 13, 2014
  • Federal Reserve Bank of New York, October 15, 2014
  • New York University, October 17, 2014
  • European University Institute (Florence), October 29, 2014
  • Qatar Central Bank and Texas A&M University at Qatar joint seminar, November 17, 2014

Below is what I had to say in two early entries in this post that went beyond simply giving the itinerary of my worldwide, multi-year “Breaking Through the Zero Lower Bound” tour:

June 17, 2013: I went to the Bank of England to talk about how to eliminate the zero lower bound back in May. Tomorrow I will give this presentation (download) at the Bank of Japan:

I think my online readers will also find it interesting. It includes arguments that I have not made online yet in any detail. 

The associated paper is very preliminary (in particular, it has very long quotations about the history of thought that need to be cut down to size, and needs to be revised along the lines of the Powerpoint file), but here is the current draft of the paper “Breaking Through the Zero Lower Bound” (download).

Update, June 29, 2013: My electronic money presentations on June 18 at the Bank of Japan, June 21 at Keio University and June 24 at Japan’s Ministry of Finance were well-received. The fact of my seminar makes the part of the  International Herald Tribune’s summary of Leika Kihara’s (gated) article "Japan policy appears set, like it or not" that I have italicized false:

The central bank is said to have no new stimulus plan in the works, nor is it pondering alternative measures.

Though I argue in my presentation that an electronic yen policy is superior to the massive quantitative easing that I advocated for Japan on June 29, 2012, because an electronic yen allows monetary policy to steer the economy without inflation, some version of an electronic yen is also the plausible fall-back policy if massive quantitative easing does not work.

For the record, the type of quantitative easing I advocated for Japan involved massive purchases of corporate stocks and bonds—”assets chosen to have nominal interest rates as far as possible above zero.” Purchases of corporate stocks and bonds should be much more powerful than purchases of Japanese government bonds. Though the Bank of Japan has the legal authority to purchases corporate stocks and bonds, there is a concern (perhaps misplaced) about the possible consequences of the risk for the Bank of Japan’s net worth. An alternative would be for Japan to push further in increasing the risky asset holdings in the Government Pension Investment Fund. That would be in line with what I write in my column "Why the US Needs Its Own Sovereign Wealth Fund."

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  1. supplysideliberal posted this