safe-913452_1280

Why Are Many Households Unbanked?

– December 27, 2018

A new NBER working paper raises doubts about the welfare gains from mobile banking.  

READ MORE
tractor-2271577_1280

The WWI Agriculture Boom and Bust

– November 15, 2018

A new NBER working paper uses bank-level financial and county-level agricultural data to show how risky lending might amplify the boom and bust.  

READ MORE
safe-1670696_1280

Competitive Full-Reserve Banking

– September 24, 2018

Historically, fractional-reserve banks have always won out against their full-reserve cousins. But times have changed.

READ MORE
MV to BV

Government Guarantees and the Valuation of American Banks

– July 23, 2018

Expectations of government bailouts drove the increase and decline of American banks’ market value to book value, according to a new NBER working paper.

READ MORE
Fig 1 caton

Base Money and the Birth and Use of Credit Money

– June 25, 2018

The complexity of credit markets creates difficulty for teaching monetary theory purely through reference to observed data. An appropriate framing should follow the evolution of money and credit.

READ MORE
argentine-peso

Not All Crises Are Due to Unexpected Shocks

– June 19, 2018

In the case of Argentina, three particular problems call into question the “surprise” explanation of the currency crisis.

READ MORE
fraction-27242_640

Setting Aside My (Fractional) Reservations

– May 9, 2018

A decade ago, I was a fractional-reserve banking skeptic. Today, I’m all for it. Here’s why.

READ MORE
old-3302673_640

Money as a Social Institution

– April 16, 2018

If the language of commerce is quid pro quo, money is its grammar.

READ MORE
bankrun

Historical Perspective on Financial Instability

– January 30, 2018

A new NBER paper shows that credit-induced banking panics are the exception, not the rule.

READ MORE
Financial depth

Financial Depth and the Fed’s Balance Sheet

– December 15, 2017

The Fed’s balance sheet crowds out bank lending, stifling economic growth.

READ MORE
patriotbond

End Government Borrowing

– September 25, 2017

The ceiling is often likened to a credit-card limit, but that’s a bad analogy. The federal government doesn’t have a debt limit at all. It has a debt sky.

READ MORE

Trump’s Plan Reduces the Tax Burden but Increases the Debt Load

– May 2, 2017

Americans spend $400 billion dollars per year to comply with the tax code. Americans also dedicate 9 billion hours of labor to comply with the current tax code. Beyond costly compliance, the current tax code distorts investment and work decisions in the economy. Something needs to be done to simplify the tax code and make it pro-growth. 

READ MORE