197 Results for “mehrling”

An Interview with the Author of “The New Lombard Street: How the Fed Became the Dealer of Last Resort”

ft. INET’s Perry Mehrling

George Soros, Axel Leijonhufvud and Perry Mehrling in Berlin, Germany (2012).

Robert Skidelsky and Perry Mehrling report on the project at the Institute’s 2011 Bretton Woods conference.

What exactly is an exchange rate?

This book traces the evolution of Charles P. Kindleberger’s thinking in the context of a ‘key-currency’ approach to the rise of the dollar system, here revealed as the indispensable framework for global economic development since World War II.

Breaking the Silence

Learn about the Young Scholars Initiative (YSI) at the Institute for New Economic Thinking, and join a panel discussion on Political Economy and New Economic Thinking with Thomas Ferguson, Perry Mehrling, and Katharina Pistor.

A review of Perry Mehrling’s book, Money and Empire: Charles P. Kindleberger and the Dollar System, and an exploration Mehrling’s discussion of the 1982 correspondence between Charles Kindleberger and Ben Bernanke examining their theories concerning financial crises.

Book review: Michel De Vroey and the problems of macroeconomics

Attendees at the book party were treated to an assortment of wine, sushi, and intriguing conversation on the rooftop of Schiffrin’s parents’ Upper West Side apartment.

Further your understanding of the economy and find an open environment for generating and discussing economic thought.

The course explores how money markets they work, in the U.S. and internationally.

Read in the context of his time, Bagehot’s book Lombard Street appears as an attempt above all to reveal the dynamic of globalization when global money was sterling.

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

This paper sketches the outlines of the new international monetary system that has emerged in the aftermath of the global financial crisis.

On February 22-24, 2019, the Young Scholars Initiative (YSI) will host its North America Convening in Los Angeles.

Financial fragility does not fall from the sky. That’s why treating risk as if it comes from exogenous shocks can’t capture the reality of financial markets.

How does economic theory match up with reality?

Five years into the Great Recession, discussion and political fights continue about the right approach to international banking supervision. How to avert the next financial crisis or at the very least lessen its damage?

Why does the apparently prescient and correct “key currency” view remain an embattled minority view?

The idea of this blog is to engage current financial news and policy debates from the standpoint of the classics of monetary theory. We ask, “What would Bagehot say?”, “What would Minsky say?”, “What would Fischer Black say?” Like them, our starting point is the idea that capitalism is essentially a financial system, which means that we need to take a money view in order to understand how it works.

Things are going to break and central banks are going to have to respond, but the mental frame that most people will be using is not well suited for understanding how the world now works

Piero Sraffa’s classic work Production of Commodities by Means of Commodities has been variously interpreted as a special case of modern neoclassical general equilibrium or a foundation stone for the revival of the classical tradition of Smith and Ricardo.

How to become a historian of economic thought? Members of the profession gather just once a year at the annual conference of the History of Economic Society but otherwise are dispersed in universities and archives all around the world.

How can we get the financial sector back to serving its intended function?

In standard economics, inequality in outcomes is typically attributed to inequality of inputs, for example, from differences in education. Yakovenko thinks about inequality in a different way by extending some ideas from statistical physics.

Here is a talk I gave recently at Wake Forest University.

An individual fish reduces the danger to itself by swimming as close as possible to the center of the school. That is how schools hold together.

If you want to understand how fund managers choose a portfolio, why not ask them?

The first thing to say about QE2 is that it is a very different operation from QE1.

The Azim Premji University-Institute for Economic Thinking Advanced Graduate Workshop in Poverty, Development and Globalization is interested in identifying the complex global interactions that influence poverty and development as well as the development strategies that have proven successful in promoting equitable growth, promoting capabilities, and reducing poverty.

Inequality did not increase during the early stages of economic development in Japan and the East Asian Tigers. But in India and China it did. Why is that?

At least since Joseph Schumpeter we know that credit is good for economic growth. At least since 2007 we know that too much credit foreshadows financial turmoil.

To cure unemployment, mostly we prime the pump: we devise fiscal strategies on the presumption that jobs follow economic growth. But the strategies have not worked, unemployment remains high.

Cosma Shalizi urges economists to stop doing what they are doing: Fitting large complex models to a small set of highly correlated time series data.

Without law and legal institutions, financial markets won’t work. That’s what economists discovered about 15 years ago, when former socialist countries turned towards capitalism.

Innovation drives economic growth and welfare, and the industrial corporation drives innovation, says William Lazonick. But just how do corporations innovate?

Delli Gatti starts where his dissertation advisor, Hyman Minsky, left off.

Discussions on the key conceptual and policy themes for sovereign debt sustainability with a view to proposing possible policy reforms.

What happens to Main Street when Wall Street fails? Japan expert David Weinstein squeezes a unique data set to answer this question.

What challenges will China have to surmount in order to make its currency a true international currency?

Economists aren’t born, they’re made. Irwin Collier digs into archives to find out how Paul Samuelson and his generation were made.

Are there more poor people on our planet today than there were last year? Many economists would approach this question as mainly a technical problem, a matter of counting.

Banks take on excessive risk since they know, in case of failure, the taxpayer will step in to rescue them. That is a form of free insurance, and Ed Kane wants to end it.

Over the past two hundred years, poor countries have become faster at adopting the technologies of rich countries. So why is it, the economist asks, that poor countries have remained poor, by and large?

Paul Samuelson was both a mathematical micro-economist, working from theorem to proof in the neoclassical tradition, and a committed Keynesian macroeconomist, convinced of the necessity of policy intervention to improve the performance of market economies. How did he square these two sides of himself? Wade Hands goes into the archives to find out.

When you flip a coin, you expect heads and tails to show up with a 50% chance each. But what if all you knew was that heads and tails each have a chance of at least 25%? That’s how Scott Condie captures Knightian uncertainty in asset markets.

Did the industrial revolution increase the relative demand for skilled labor, or decrease it?

When externalities are present and transaction costs are absent, private parties will strike welfare-enhancing deals regardless of who owns what. In a frictionless world, bargaining leads to efficiency. That is the essence of the Coase Theorem, and it is fiction, according to Steven Medema.

The Nobel Memorial Prize defines high achievement in economics, and it validates the discipline’s claim for scientific authority. And yet, historically, it can be understood as a reflection of domestic policy conflicts in Sweden.

We all know it: The financial sector is bloated and banks are too big to fail. But just how bloated is it, and how much should it be shrunk?

This research project recounts the intellectual history of the dollar as an international reserve currency, starting with World War I, which brought the international gold standard to an end, and continuing all the way up to the present global financial crisis.

Bloomberg

How do economists make their models work? By assuming that investors have rational expectations and that every market participant is alike. However, things quickly get messy once economists start to acknowledge that people are different, interact with each other, and change heuristic forecasting strategies based on recent performance.

The physicist Sorin Solomon begins to feel dizzy when the economist Leanne Ussher talks econ lingo. Yet he listens, because the two of them have found a productive area of collaboration: some economic phenomena, they find, can be explained without recourse to the quirks that feed into human decision making.

In 2006, the Fed asked its macroeconometric model what would happen if house prices dropped by 20%. The model projected the past into the future and said: “Not much.” Well, the financial crisis proved it wrong.

My first TV chat show performance:

So, how hard is it to write the history of exceptional figures? Shall we buy film cameras?

One of the fundamental ideas of modern economics — that people have rational expectations, an unbiased, statistically correct view of the future — is, in reality, a simple hypothesis.

Climate change policy is caught in a stalemate between those who fear the environmental consequences of not doing enough and those who fear the economic consequences of overreacting. But controversy over the extent and sources of climate change need not stand in the way of a positive economic policy response.

The Economist pays tribute to Hyman Minsky, whose ideas on financial instability have not been given the attention and prominence they deserve

The British Corn Returns data provided the empirical basis for the fierce debate around the introduction and repeal of the 19th century British Corn Laws. Contemporary readers, like David Ricardo and Thomas Malthus, followed them as closely as stock market prices of today. Much of 19th century political economy rested on contemporaries’ interpretations of this data.

Institute for New Economic Thinking grantees Christian Belabed and Thomas Theobald and their co-authors have revived this old theory as a hypothesis to explain the apparent statistical link between rising income inequality and current account deficits.

Corrado DiGuilmi and Laura Carvalho, grantees of the Institute for New Economic Thinking, have individually been exploring two possible alternative analytical entry points: mean field methods from physics and stock flow consistent modeling from accounting. The idea behind their grant is to work together to combine these two approaches, the first bottom-up and the second top-down.

Yesterday, Harvard students of Ec 10 staged a walkout to draw attention to the bias they detect in the course.

Explore your curiosity in economics in an open and critical community.

Most of us probably think of management consultancy as a technocratic function, helping companies fix internal problems in order to become more productive. But Institute for New Economic Thinking grantee Kimberley Chong thinks about it in a different way, by viewing management consultancy through the lens of cultural anthropology.

This research project develops a “Money View” analysis of the recent evolution of China’s financial system.

INET Grantee & Academic Advisor Perry Mehrling talks about his new book “Money and Empire: Charles P. Kindleberger and the Dollar System”

This research project explores the process of modern (shadow) money creation in hierarchical and interconnected monetary systems. In theorizing the dynamic instability of shadow money, it provides a comparative account of the structural and institutional specifics of shadow money in the US, Eurozone and China, and the policy challenges thereof.

Sense about Social Security

What kind of “Minsky Moment”?

“Governments propose, markets dispose,” as Charles Kindleberger liked to say.

INET gathered hundreds of new economic thinkers in Edinburgh to discuss the past, present, and future of the economics profession.

A money view of the commodity bubble

The Globe and Mail published a long piece about the dismal science, covering a lot of ground from moral philosophy to rational expectations, from Adam Smith to this year’s Nobel laureate Thomas Sargent, from the Post-Autistic Economics movement to the Institute for New Economic Thinking. Excerpts:

Why is this a surprise?

In the papers of economist Charles Kindleberger, Perry Mehrling found notes on the paper that won Ben Bernanke his Nobel Prize.

The Institute for New Economic Thinking convened many of the world’s most distinguished economists, academics and thought leaders at its inaugural Conference at King’s College, University of Cambridge.

[The following guest post is by John Whittaker, from whom we have learned much of what we know about how the European payments system works. See his terrific papers here and here, both of which reward close study. He has been looking over the last couple Money View posts, and the comments to those posts, and has this to say.]

Okay, so here is the statement, but what does it mean? Felix Salmon offers an unnamed advisor’s flowchart. Let’s see if Money View thinking can do better.

Understanding QE3

Currencies or Commodities?

What’s really going on with Europe’s bailout of the Irish Economy

Peter Conti Brown’s new book explores and debunks a powerful meme shaping public understanding of the role of the Fed

One INET project is to “reconnect the teaching of economics with the working of the actual economy,” which is to begin with a reform of the undergraduate curriculum.

First ECB, then EFSF

Fed to the Rescue?

The text below is the comment I offered on Mr. Soros’ opening speech at INET’s Berlin Conference April 12, 2012. The text of Mr. Soros’ own speech is here. Video of the entire session is below—my bit starts at 55:00.

Fundamentally, the ECB is trying to keep the ongoing sovereign debt crisis from turning into a full-fledged bank credit crisis.

Entangling alliances or entangling leagues are nothing to the entanglements of cash owing—Keynes

The future of government mortgage support