Category Banking and Finance

The Icelandic and Irish Banking Crises Alternative Paths to a Credit-Induced Collapse Central banks set the stage for financial collapse through excessive credit expansion, but a lax monetary policy isn’t the only way that policymakers can foster a meltdown. As…

Fractional Reserves and Demand Deposits Historical Evidence from an Unregulated Banking System Would banks operating under laissez faire adopt a 100 percent reserve ratio or a fractional-reserve rule that would allow them to affect the money supply? The Chettiar banking…

We Are Not Macroprudentialists A Skeptical View of Prudential Regulation to Deal with Systemic Externalities The 2008 financial crisis is widely touted as supporting the case for more bank regulation and taxation to deal with “systemic” risk. This claim, however,…

The Legislation of Nationwide Assured Banks in Argentina, 1887–1890 Free-Banking Failure or Regulatory Failure? Many analysts have characterised Argentina’s 4 years beneath the Legislation of Nationwide Assured Banks as a interval of “free banking,” which suggests—incorrectly—that the monetary disaster of…

Alternatives to the Federal Deposit Insurance Corporation Federal deposit insurance creates moral hazard that encourages risky banking practices and sets the stage for bank failures and financial crises. Alternatives to our current scheme include the creation of a more stable,…

Dodd–Frank Accretion of Power, Illusion of Reform The Dodd-Frank Act, ostensibly passed to address causes of the financial crisis of 2007-2009, created government entities whose powers may be setting the stage for even worse problems with the financial system. With…

An Episodic Historical past of Fashionable Fed Independence Regardless of many steps taken to make sure its independence, the Federal Reserve nonetheless succumbs to political pressures. This pessimistic conclusion is in line with each empirical research and an anecdotal evaluation…

A Proposal of Monetary Reform for Argentina Flexible Dollarization and Free Banking Argentina’s inflation problem has been so chronic and debilitating that it can be solved only by adopting a reliable alternative to central banking and discretionary monetary policy. The…

The Imprudence of Macroprudential Coverage The monetary disaster of 2008 has prompted some economists to name for presidency regulators to broaden their attain—by attempting to attenuate monetary disruptions and “systemic dangers” which may hurt the broader economic system. Their arguments,…

Bitcoin and the Way forward for Digital Funds To turn out to be extensively adopted, bitcoin and different alt-coins should overcome competitors from current, government-sponsored currencies and cut back the prices for customers to modify to new cost techniques. Till…