Friday, 24 October 2014

Monthly Archives November 2011

Literature and Monetary Thinking

Posted by Alex Chafuen
November 29, 2011

Marjorie Grice-Hutchinson, studying Spanish literature, stumbled into the monetary writings of the authors of the School of Salamanca; she shared those writings with F.A. Hayek, who realized how relevant they were.   Murray Rothbard was also exposed to the Salamanca tradition by Hutchinson, and I count myself in that tradition (Calzada, Moreira, Huerta de Soto, […]

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Financial Crisis in Europe and Regime Uncertainty

November 28, 2011

In recent days, Europe has seen two governments fall: the Prime Ministers from Greece and Italy. New governments where formed. Besides these important changes, the financial markets did not calm down; volatility and uncertainty did not go away as former governments did. This points to the fact that the problems in Europe are not political, […]

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The Fed’s “Other” Mystery

Posted by Gonzalo Schwarz
November 26, 2011

Why Did The Fed Inject Banks With A Record Amount Of “Other” Cash In The Past Week? Submitted by Tyler Durden on 11/25/2011 20:19 -0500 Update: as some claim, the “other” reserve move may have been sourced to satisfy GSE demands. That would be ideal and would indicate that FR banks are transferring excess reserves to fund GSEs […]

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The Lenders of Hazard

November 25, 2011

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 the idea of acting as a lender of last resort to embattled, but solvent, […]

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