4 ms·
a) We need to stop using the word debt for central banks. Consumers in their daily lives learn that debt is bad. For central banks is the way they work. (And co
by eftychis 4y ago
a) We need to stop using the word debt for central banks. Consumers in their daily lives learn that debt is bad. For central banks is the way they work. (And companies try to have always some form of debt for liquidity and reducing risk.)
b) go on with our lives. The ECB has other issues that it should be criticized about -- mainly it is unsurprisingly a political tool and not having the economic growth, wealth, and stability of the EU members as its priority.
- idlehand 4y agoA new word makes sense. In my native Swedish the word for debt is also the word for guilt. Tells you something about our view of debt and why the national debt is so low.
- anm89 4y agoThis view point is never endingly naive. The confidence which people who never seem to have a deep grasp on the topic repeat it never gets old. They are issuing fixed coupon, fixed term credit obligations. What do you want to call it? A bicycle? There happens to be a word for this particular scenario where someone lends you money and you create a contract to pay it back. It's called debt. The entire finance world isn't reworking itself around your misunderstanding of the issue.
- IshKebab 4y agoYou've missed his point. He isn't misunderstanding the term "debt", he's just saying there should be a different word for "good debt" that doesn't have the negative connotations that it does with personal debt. I guess kind of like how mortgages aren't seen as bad even though they're debt. Fairly safe debt, sure. But still debt. I don't know if a new word would help but you've misunderstood anyway.