New Writer for BEA
It is with great pleasure that I introduce a new writer to Barry Edwards and Associates (BEA) this week. His name is Rob Thomas and he has many years of experience in the field of mortgages and property funding and you can read his profile under the ‘About Us’ menu at the top of the page which explains his business activities in more detail. During his early career Rob spent some time as an economist at the Bank of England which gave him the experience to write a report about central banks entitled ‘Unconventional monetary policy explored-The case for replacing QE with a sovereign wealth fund’.
You can read the complete report if you click on the title under ‘Reports and Papers’ in the right hand column of this page. Rob has prepared a brief summary to explain the contents as follows;
Unconventional monetary policy explored – The case for replacing QE with a UK sovereign wealth fund
Since the financial crisis central banks in western countries have spent trillions of dollars buying assets and undertaking other forms of unconventional monetary policy in an effort to stabilise the financial system and maintain economic output. This paper, written in 2014, provides an overview of these policies as undertaken by the four leading central banks (the US Federal Reserve, The European Central Bank, The Bank of Japan and the Bank of England).
The paper examines the degree of success central banks have had with the unconventional monetary policies they have implemented to date before exploring the potential pros and cons of other forms of unconventional policy that have been proposed by economists but not yet implemented.
Finally, the report proposes a novel form of unconventional monetary policy where a central bank would establish a fund to invest in infrastructure projects using funds derived from the sale of part of its government debt portfolio bought under QE. Such a monetary sovereign wealth fund would have distinct advantages over the policies pursued to date. It would directly stimulate demand, it would increase the productive capacity of the economy and it would avoid some of the negative consequences associated with QE, such as stoking excessive asset prices and incentivising banks to increase lending despite already high levels of indebtedness in the economy.
Rob will be posting more reports he has written over the recent past and will be commenting on all matters to do with mortgages and government financial matters. He will propose new ideas he has advanced to deal with a range of problems in financial services. Rob will also prepare analytical papers about specific markets for information and discussion.
In conjunction with me and other writers who will be joining us at BEA it is the intention of this blog to become the leading commentator on new ways of providing finance for a whole range of purposes both personal and commercial. Where we believe we have a contribution to make in new ways for government to fund investment in infrastructure and research and development we will publish them on this blog for open discussion with all those who wish to comment and participate in presenting the ideas.
Rob’s first report on this blog does exactly that and we hope it will generate discussion amongst our subscribers which will be posted as and when they are received. We hope you find this report interesting and look forward to your comments.