June 2011

Can It Happen Again?

The view from BIS

Now comes the Annual Report of the Bank for International Settlements, one of the few official agencies to raise alarm about potential crisis before the actual crisis occurred.   As I read their Report, they are raising alarm once again.  We should pay attention. Read more

Brinkmanship or Statesmanship?

The Political Economy of Debt

Read more

Are banks firms? (continued)

Liquidity versus Solvency

In response to my last post, Zvi Bodie writes to suggest that I may be simply rephrasing a point that he and Robert Merton made in a series of papers some years ago (the seminal paper is here).   I don’t think so, but the suggestion brings into the foreground the question o Read more

Are banks firms?

New Thinking about Modigliani-Miller

In the debate over financial reform, one of the major themes has been the need to protect the public purse from the cost of future bailouts by requiring too-big-to-fail banks to hold a larger buffer of private capital. Read more

Chinese property: a money view

The Chinese property market may finally be boiling over; there are certainly enough signs that the bubble is ready to burst. I won't try to call the peak. What's more useful is to try to understand all of the moving parts, and a money view of the problem lets us do exactly that. Read more

Kansas City-style Financial Reform

A New Glass-Steagall?

Jazz, barbecue, and now Kansas City has also its own distinctive style of financial reform, put forward in a recent paper by Hoenig and Morr Read more