197 Results for “mehrling”

Today’s Financial Times article: ECB: trick or Trichet (Dec 2)

Is raising required bank capital the answer?

New approaches are being developed, but efforts are fragmented and need to be brought together if we hope to piece together a paradigm. 

Learn to read, understand, and evaluate professional discourse about the current operation of money markets at the level of the Financial Times.

The central bank today is not just the government’s bank, but also a bankers’ bank, a truly hybrid institution

Why most economists did not see the 2008 crash coming

Everyone wants to ring-fence something, but they can’t agree on what:

Europe is embarked on a grand experiment, managing modern financial crisis without a dealer of last resort, so refusing to follow the lead of the 2008 Fed.

The 5th UNCTAD YSI Summer School provides an opportunity to explore the Challenges and Opportunities of a New International Economic Order. The school will bring together UNCTAD experts, academics, diplomats, and young scholars from across the globe for lively and stimulating intellectual debates.

In a previous post we queried whether the theory of the consumer as developed in the first three chapters of Mas-Colell, Whinston and Green (and indeed other comparable texts) provides anything by way of content beyond what is implied by the abstract description of consumers as agents who are maximizing something. [We did not discuss chapter four, on aggregation of demand, to which we may return later]. As we noted then, a comparable point can be made about the theory of the firm.

Perry Mehrling’s new book traces the rise of the dollar through the life and career of influential economist Charles Kindleberger

Luohan Academy will share content while working with INET to plan future co-sponsored events, seminars & more

Focusing on what money really is – whether gold or state fiat – shifts attention away from what credit really is, which is to say away from the center of discontent.

Hot on the heels of the BIS, now comes the IMF Global Financial Stability report, “Corporate Leverage in Emerging Markets–A Concern?”. Yes, a concern, and just in time for the annual meeting in Peru next week.

Everyone wants to ring-fence something, but they can’t agree on what: Vickers, Liikanen, Volcker.

Last week the central banks of China and Australia announced the creation of a $31bn currency swap line

When I started this blog, almost exactly one year ago today, my thought was to provide commentary on the financial events of the day, using the Financial Times as my primary source of information about those events.

Forget the G7, Watch the C5

At its core, this rolling crisis is really about financial globalization.

Financial Globalization versus the Nation State

And heading where?

The Political Economy of Debt

Further Thoughts

But not by him

Or Does It?

Financial Globalization and the Nation State

GFC finance as war finance

Struggles over shadow money today echo 19th century struggles over bank deposits.

The economic historian would have seen the British vote to leave the European Union as part of a larger drama of centralization versus pluralism

The Eurocrisis has many dimensions—bank solvency crisis, sovereign debt crisis, political unity crisis, and economic/unemployment crisis—but time after time it has been the liquidity crisis dimension driving events, and ECB response to the liquidity crisis driving institutional evolution. The reason is simple. Liquidity kills you quick.

A week ago, Mark Carney, chairman of the Financial Stability Board, warned of emerging global consequences of the escalating eurozone crisis.

Grand Bargain at last?

A New Glass-Steagall?

Bailout, Default, or Plan C

Exit Strategies and the New Normal

The concept of bank capital

Before the dollar there was the pound, and after the dollar there will be something else.

Financial Globalization and its Cryptocurrency Discontents

Remarks at a memorial service for pioneering financial analyst Jack Treynor Memorial, MIT Chapel, June 19, 2016

So why am I hopeful about the future?

The title is the same as that of Maury Obstfeld’s Ely Lecture, delivered Jan 6 at the AEA meetings in Chicago. Yours truly was at the meetings mainly to deliver a paper on “Three Principles for Market-Based Credit Regulation”, about which more in a later post. And for most of the rest of the time I was locked in a hotel room interviewing candidates for an assistant professor slot at Barnard College (which gave me a good overview of the current state of macroeconomics, again fodder for a later post).

The fact of the matter is that European bank funding markets are collapsing onto the ECB balance sheet.

Why is the IMF getting involved in the Eurocrisis, and why is its involvement taking the form of lending to individual member states of the Eurozone?

The view from BIS

A Monetary Rorschach Test

Liquidity versus Solvency

The illusion of black swan-proofing

What are the 100 most pertinent economic questions facing our global societ?

This morning, when I woke up a few hours before the Nobel announcement, I felt seriously dissatisfied. I had meant to write a post on Thomson Reuters’s prediction that Card, Angrist and Krueger may win the Nobel for their work on empirical microeconomics.

FT Alphaville has picked up on my friend James Sweeney’s latest, and since James cites the latest writings by other friends Zoltan Pozsar, Manmohan Singh, as well as my own most recent, the piece reads like a discussant’s comments on a shadow banking symposium.

Plumbing Matters

Updating Hawtrey for the Shadow Banking System

Learning How to Swap

A Money View

(Way) Beyond Diamond-Dybvig

And the nominees for Best Documentary are…

And the nomination for best Perp Walk goes to…

Today’s Financial Times article: Report to highlight alleged conflicts of interest in Goldman’s dealings (Jan 12, 2011), Goldman’s pieties insult our intelligence (Jan 13, 2011)

It is all about promises to pay in the future.

From a money view perspective, the central issue is settlement of TARGET balances between national central banks within the Eurozone, and the key is to understand TARGET balances as a kind of interbank correspondent balance.

One silence, and one silo

New Thinking about Modigliani-Miller

War Reparations, or Prosperity

And what was QE about anyway?

Capital Flows, Cross-border Banking, Shadow Banking, and the Dollar

Speculation, stabilizing or destabilizing?

Who’s afraid of finance?

Saving the (International) Dollar

When the survival constraint bites

Reinterpreting Bagehot’s mature work as the origin of the key currency tradition

What Strategies can Break This Dependency?

Like any family reunion, the Jackson Hole Economic Symposium may have been as significant for what was said as it was for what was not discussed

The BIS offers a comprehensive picture of the state of the world economy, and of dysfunctional policies holding it back

Below is a revised version of a talk I gave at the New School University, at a conference to launch Lance Taylor’s latest book. The date of the event was April 28, 2011, more than a year ago, and the delay in revision was entirely my fault—overcommitment and pressing deadlines on many fronts. Sorry about that.

At the heart of the Eurocrisis lies a vicious circle where once there was a virtuous one.

While waiting for TALF

Alchemy or Banking?

Five lessons from the last crisis — for managing the next one

The Collapse of Free Market Macroeconomics

From MIT to IMF

We know about emergency lending, but what we are missing is the macroeconomic framework to guide a new rule for stabilization policy

When Paul Krugman paints John Maynard Keynes as a pioneering critic of dominant free-market economics, he exaggerates wildly, both about the rigidity of orthodoxy and about the pioneering character of Keynes’ critique.

Does general equilibrium theory sufficiently enhance our understanding of the economic process to make the entire exercise worthwhile, if we consider that other forms of thinking may have been ‘crowded out’ as a result of its being the ‘dominant discourse’? What, in the end, have we really learned from it?

What we’re reading: A weekly scan of published items relevant to the Institute’s work

The state has long used law to back private money—with dire consequences, then and now

A dollar-denominated global economy means the Fed is at once the bankers bank and government bank, as well as both U.S. central bank and global central bank — managing that hybrid is the challenge of our time

A new online course challenges typical teaching approaches.

Notes from the Institute’s Director of Research on some significant papers and contributions produced in 2016 under the INET rubric 

The INET roundtable on “new conversations and the academy” took place a week ago. Most panelists were bloggers, including Mike Konczal from RortyBomb and Noah Smith from Noahopinion.

The depth of the U.S. securities market helps ensure dollar hegemony

Modern Monetary Theory is problematic. Launching large scale fiscal programs that rely on it would be skating on thin ice.

The election of Italy’s right-wing, populist government exposes the economic and democratic shortcomings of the European project and its nationalist rivals

Banks have long had undue influence in society. But with the rapid expansion of a financial sector that transforms all debts and assets into tradable commodities, we are faced with something far worse: financial markets with an only abstract, inflated, and destabilizing relationship with the real economy. To prevent another crisis, finance must be domesticated and turned into a useful servant of society. 

In the face of  laissez-faire capitalism at home and resurgent nationalism across the globe, INET offers an innovative look at the causes of—and solutions for—the problems that ail a fissuring world economy.

The education of the next generation of economists too often ignores the real crisis we face today: climate change, inequality, and financial instability. Sam de Muijnck and Joris Tieleman seek to address this problem in their book, Economy Studies, which outlines a practical road map for effectively connecting pluralism of core academic material to real world events, values, and the great questions of our time.

In Treasury markets, there are no libertarians, only grateful recipients of single-payer insurance for ailing financial markets.