The First International Financial Crisis: Free Banking Failure or Regulatory Failure?
The Baring Crisis of 1890 is pointed out as the first modern international emerging financial crisis. The collapse of the banking system in Argentina came very close to triggering a financial crisis in London, the major international financial center. …
READ MOREThe Lenders of Hazard
The following passage in a note at The Economist points out to the well-known problem of moral hazard with lenders of last resort. But the moral hazard problem affects more than just the financial institutions: The European Central Bank (ECB) rejects t …
READ MOREEurope and the Euro: Attacking the Problem or Dealing with the Symptoms?
The recent political events in Europe, especially the situation in Greece and in Italy, brought new concerns about the situation in Europe and the future of the Euro. If countries do not honor their debts, how hard will their economy be hit? What happe …
READ MOREIt is that easy to cook up new money?
The financial, and fiscal, crisis in Europe has brought doubt to the future of the Euro. Can it persist, or are we witnessing the end of the Euro? But, if the Euro is to be abandoned, how will the transition play out? In this respect, a latest post in …
READ MOREBusiness Cycles, Open Economies and Wandering Bubbles
In a previous post we commented on some aspects that are relevant for business cycles in the context of open economies. We also showed that in not a few cases the Mises-Hayek theory of business cycles is offered as an explanation of what went wrong. Ev …
READ MORE“Gold is NOT money!.. But, can we have yours to pay our bills?”
“NEIN! But take all zee paper you wish…”
READ MORESpeech given to the Committee for Monetary Research and Education
Speech given to the Committee for Monetary Research and Education
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Why We Can’t Escape the Eurocrisis
EU and U.S. debt are interlinked through the banking system.
READ MORE(Poison) Ivy League Economists Dis the Gold Standard
As the Wall Street Journal reports, 6 Yale economists convened last week in New Haven to discuss “The State of the U.S. Economy: How Do We Create More Jobs?” Not surprisingly, their answers were straight out of the Keynesian playbook: more stimulus, in …
READ MORENotes on the Euro Crisis; or, Crisis of the Euro Notes
The Euro is Dead. Long Live the Euro To ensure the European sovereign debt crisis doesn’t go to waste, the markets have kept policy makers and bankers on their toes. The naysayers of a European turnaround have become so overwhelming that it is stunning …
READ MOREThe Lasting Cost of Debt
Research Reports Vol. LXXVIII, No. 16 | September 19, 2011 When nations accumulate a certain level of debt, growth suffers. For the U.S., that dangerous moment is now. by Polina Vlasenko, PhD, Research Fellow Additional Content Stock Prices and Inflati …
READ MOREThe U.S. Downgrade: Fiscal Realities
Research Reports Vol. LXXVIII, No. 15 | September 5, 2011 There aren’t a lot of ways to reduce government debt. The most likely scenario puts the burden on savers. by Polina Vlasenko, PhD, Research Fellow, and Steven R. Cunningham, PhD, Director of Res …
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