Archive for July, 2011

Saving, Hoarding and Fractional Reserve Banking

Saving, Hoarding and Fractional Reserve Banking
Fractional reserves is an important component of financial stability. Most of the financial regulation is aimed to control this aspect of banking practice such that banks do not become insolvent and a contagious set of bank runs gets into the financial markets. It is as if banks were unable to control...
July 28th, 2011 | Commentary, Scholars' Corner | Read More

The Perfect Protection of Prodding and Printing, Part III

The Perfect Protection of Prodding and Printing, Part III
PART III: The study of a social science like economics is different from that of a physical science like chemistry or physics.  When the chemist combines his elements incorrectly he may get a bang or a fizzle; either way, he can be definitively sure that his attempt has been a failure.  If he tries...
July 26th, 2011 | Commentary, Scholars' Corner | Read More

A Golden Moment?

A Golden Moment?
Article and photo originally published at The Weekly Standard William Kristol July 24, 2011 Judy Shelton makes the case in the new issue of THE WEEKLY STANDARD for the “Gold Standard or Bust.” Sound finances, she points out, require sound money, and sound money, it turns out, seems to require a dollar...
July 25th, 2011 | Blogs, Commentary, Popular Articles | Read More

Gold Standard or Bust

Gold Standard or Bust
Article and photo originally published at The Weekly Standard August 1, 2011 As the truth-or-dare battle over raising the debt ceiling moves toward a resolution of some sort, we are witnessing a unique political moment, with attention finally riveted on our nation’s fiscal future. We are about to learn...
July 25th, 2011 | Commentary, Scholars' Corner | Read More

Germany and the Financial Crisis

Germany and the Financial Crisis
Lately, a lot has been said about Greece, Spain and Italy in the financial crisis affecting Europe. The fear is that these economies can affect the performance of bigger economies, like Germany, one of the largest economies in the world and the second worldwide exporter. Germany, as well, is in a precarious...
July 20th, 2011 | Commentary, Scholars' Corner | Read More