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The paper answers three questions.(1) Does it matter if a central bank suffers a large capital loss? (2) Can the central bank become insolvent? (3) When, how and by whom should the central bank be recapitalised?
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works, when modern monetary theory makes sense, why the Eurosystem has a potentially fatal design flaw, why the fiscal … theory of the price level is a fallacy and how to escape from the zero lower bound. …
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The author provides a rigorous analysis of Milton Friedman's parable of the "helicopter" drop of money a permanent/irreversible increase in the nominal stock of fiat base money rate which respects the intertemporal budget constraint of the consolidated Central Bank and Treasury - the State....
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