Olivier LEFEBVRE, Olivier Lefebvre Consultant, France
Easy money is a kind of pact between Southern and Northern Europen countries. The first can manage the State's debt and continue the budgetary deficits. The second appreciate what is favorable to enterprises and shares. The danger is inflation (which requires to raise the interest rate), but it should become rare. The decline of a left-oriented theory (the regulation of the labor market by the syndicates, which makes inflation invevitable because of the spiral salaries / prices) allows the start of another left-oriented theory, chartalism. That is to say the idea that full employment is reached when the State and the Central Bank handle the monetary mass in a sovereign way.
Indeed, inflation is not the main topic of the discussion (between Northern and Southern European countries). It is the consequences of chartalism. Otherwise, if chartalism is accepted, the "monetization of the debt" (the Central Bank systematically buys the State'debt) is the solution, no matter if there is inflation or not.
The paper will discuss these objections to chartalism: (1) the hegemony of chartalism is not certain (2) it was never experimented (3) there is no more role for the interest rate and secure savings (4) Statism: the State is omnipotent in the field of economy (5) what country should accept that its currency is the one used in international trade?
Mots clés : Euro|European Central Bank|Chartalism
A103154ol