MMT (Modern Monetary Theory) is a recent theory in economics within the macroeconomic thinking that aims for public policy to understand the strength of their currency and use the money to the full advantage of their economy.
We are on the verge of a new financial frontier due to the emergence of cryptocurrencies, and this has changed the role of central banks in the monetary system. The growth of coins such as Bitcoin and Ethereum has taken some of the importance of central banks and spread it among thousands of computers around the world. This has not gone unnoticed by governments, and they have been looking for a more centralised, less volatile alternative. The introduction of Central Bank Digital Currencies (CBDC’s) may yet shift the power back to the banks.
The construction sector in Ireland is bracing itself for materials shortages as the perfect storm that has been the last eighteen months continues. The Irish Times amongst others are reporting on the various reasons behind this.
Last March proved to be HSBC’s strongest month ever for mortgage completions. The bank completed more mortgages than any month since it began to offer home loans almost half a century ago. During the month, more than 3,000 first time buyers completed mortgages. Further, according to the Bank of England, net mortgage borrowing reached a record £11.8 billion, the strongest figure since records started in April 1993. This all came off the back of an extended tax break on March 3rd.
Housing is inelastic in demand; everyone needs it (both renters and owner-occupiers). There are two barometers of housing: one is the yield (relationship between sale and price), which reflects a user cost but also finance technology and confidence and is useful for policymakers to make informed decisions. Secondly, the other measurement is the elasticity of supply.