|
By Prof. Dr. Bruno COLMANT, CFA, Member of the Royal Academy of Belgium
Since the 1980s, from the relentless fight against inflation to the alarming increases in private and public debt to its massive purchase by central banks, there has been a growing sense of systemic fragility. Central banks have intervened, creating money to finance governments by buying up their public debts, which were themselves contracted in an attempt to stabilize or support faltering economic growth. One of the reasons for this increase in the supply of money by central banks is to relieve commercial banks of the burden of financing public debts since these are now partly financed by money creation. But this is precisely what will happen.
One could imagine, of...
|