Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
I must say I don't remember reading this before. Which sadly doesn't men I didn't.

YV's FT coins are pretty different from the proposals for tax anticipation notes we had so far. First their face value is greater than 1 when held for a certain time and used to extinguish tax liabilities. Secondly they can be exchanged to € at will. Finally he envisioned people buying them on their own initiative.

On the face of it I don't really see the upside here. Since the Greece has only limited hard Euro funding there is some risk here of a bank run. Then there is the distributional effect of and opportunity cost for what amounts to a tax break for people with savings.

Still, it's a year old, not a complete proposal and he wasn't a minister at the time.

by generic on Tue Feb 24th, 2015 at 06:28:57 PM EST
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