Tuesday, 27 June 2017

Author Archives William J. Luther

IRS Summons of Coinbase Undermines Privacy, Discourages Innovation

June 7, 2017

The IRS is expected to respond to a recent Congressional inquiry into its summoning records from Coinbase, a San Francisco-based digital currency intermediary, by June 7. The inquiry, sent by House Ways and Means Committee Chairman Kevin Brady (R-TX), Senate Finance Committee Chairman Orrin G. Hatch (R-UT), and House Ways and Means Oversight Subcommittee Chairman […]

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The Politics of Bitcoin

May 26, 2017
in Blog

David Golumbia has a new book titled The Politics of Bitcoin: Software as Right-Wing Extremism. It has received less than stellar reviews from Duke University’s Mike Munger and Bitcoin Magazine’s  Giulio Prisco. So, perhaps I am just piling on. But pile on I must. Here’s the short version: Many see bitcoin as a clever piece […]

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The Regression Theorem: Practical Applications

May 23, 2017

In my last post, I offered a brief summary of the regression theorem and provided some historical context to explain why it is an important idea.  In this post, I will trace some practical applications of the regression theorem. Commodity monies can emerge naturally. The first practical application of the regression theorem concerns commodity monies—that […]

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The Regression Theorem: Summary

May 19, 2017

In the late 1800s, three economists working independently radically transformed the way we think about value. Classical economists had struggled to explain why water is typically much cheaper than diamonds, despite being more useful on the whole and, indeed, crucial to one’s survival. Then, William Stanley Jevons, Carl Menger, and Léon Walras offered an elegant […]

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Reserve Holdings and the Size of the Fed’s Balance Sheet

May 8, 2017

In a recent post at FT, Sam Flemming documents growing concerns among some former Fed officials that the Fed “risks political interference and losing its independence if it maintains a large balance sheet in the longer term.” I’ve discussed the increase in the size and composition of the Fed’s balance sheet before.  More recently, George […]

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Cash and the Zero Lower Bound

March 22, 2017

This is the fourth (and, perhaps, final) post on Ken Rogoff’s The Curse of Cash. As summarized in an earlier post, Rogoff argues that the benefits of banning cash (e.g., preventing crime, enabling effective monetary policy) exceed the costs (e.g., a reduction in financial privacy). He does not attempt to estimate the benefits and costs […]

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