Joakim Book holds a masters degree from the University of Oxford and was a visiting scholar at the American Institute for Economic Research in the fall of 2018.
It happened sometime after the crisis of 1847.
Before New York acquired its status as the financial center of the world, the honor of that title was reserved for London and, before then, Amsterdam for roughly a century each.
Financial markets, including markets for complex instruments that may just look like speculative casino bets, allow important real transactions to occur. And in a brilliantly decentralized way, they bring into harmony people whose information, values, goals, and risk aversion differ.
To remain consistent, opponents of so-called fractional-reserve banking have to denounce overbooking practices among airlines as well as the entire business of insurance.
Why wouldn’t we want safe and stable banks? Like almost everything else in economics, benefits in one area comes with real costs in others.
Seismologists can’t predict earthquakes. Economists can predict financial meltdowns? Please.