Three interesting facts about Chinese monetary history

Former IMF Chief Economist Eswar Prasad’s excellent book Gaining Currency – The Rise of The Renminbi starts with a fascinating chapter on China’s monetary history, the longest by far of any country. The book is ultimately a persuasive answer to the question, will the RMB become a leading international currency? His answer is yes, but only… Continue Reading

Yet more quotations on my birthday

Every year is getting shorter, never seem to find the time. Plans that either come to naught or half a page of scribbled lines. Hanging on in quiet desperation is the English way. The time is gone, the song is over, thought I’d something more to say… Time, Pink Floyd All I ever wanted All… Continue Reading

What is helicopter money?

The possibility that central banks might resort to extreme monetary measures, including helicopter money, is much debated in monetary policy circles. But what is “helicopter money”? * In normal times, central banks in developed countries try to control inflation and the level of economic activity by controlling the short term interest rate. But since the… Continue Reading

Classifying funds: the type of contract – is it equity or debt?

Another way to classify funds that are provided by a saver to an investor is whether they are in the form of debt or equity. These are the two main forms of contract through which one person or company can provide funding to another. Note that governments, which are very important actors in the financial system, can only… Continue Reading

Key financial concepts: securities

Securities are a very important and useful piece of financial technology, including bank notes, shares and bonds. They make possible a wide range of financial transactions and provide competition to the other main source of funding, banks. * A security is a certificate representing a contract between two or more people which promises to pay… Continue Reading

New article in the Chatham House journal “The World Today”

https://www.chathamhouse.org/publications/twt/august-27-1956-all-systems-glow August 27, 1956: All systems glow –  Simon Taylor on the opening of Britain’s Calder Hall nuclear power station It’s nearly 60 years since the UK switched on the first full scale nuclear power station in the world, Calder Hall, in the north west of England. My article explains how it came about. Continue Reading

Key finance concepts: exchange rates

Exchange rates are among the most important macrofinancial prices, influencing many aspects of an economy. This post introduces exchange rates and their importance for macroeconomic adjustment * What is an exchange rate? An exchange rate is a ratio, the price of one currency relative to another. All prices are ratios, but normally they’re expressed in… Continue Reading