53. RE-IMAGINING the Eurozone - John Cochrane
Episode description
CPSI Director Rasheed and Economist John Cochrane discuss the structural complexities of the Eurozone’s monetary system, focusing particularly on TARGET2 balances.
Trade imbalances within the Eurozone are no longer offset through private financial claims, but have instead created a vast network of public-sector IOUs among national and central banks.
The transformation of the Euro into a fiscal conduit has introduced new risks, especially in the case a country exiting the Eurozone, leaving its massive debts unpaid. Cochrane emphasizes that monetary and fiscal policies are inseparable, particularly in a high-debt environment, and suggests that the architecture of the Eurozone should reflect this integrated reality.
Join us for this informative episode as we also tackle contemporary banking mechanics, including CBDCs and the Fed's aversion to Narrow banking, alongside growing pains like ballooning US debt and a regulation-encumbered banking system.
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