June 2011

Can It Happen Again?

by Perry G. Mehrling on June 27, 2011 3 comments

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?

by Perry G. Mehrling on June 22, 2011 3 comments

The Political Economy of Debt

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Are banks firms? (continued)

by Perry G. Mehrling on June 16, 2011 1 comment

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?

by Perry G. Mehrling on June 12, 2011 1 comment

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

by Daniel H. Neilson on June 10, 2011

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

by Perry G. Mehrling on June 05, 2011

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

About this Blog

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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.

Money View Resources Page

Presentations and lecture notes that help providing a contextual framework to better understand the Money View. More...

The New Lombard Street

Perry Mehrling is the author of The New Lombard Street, which traces the evolution of ideas and institutions in the American banking system since the establishment of the Federal Reserve in 1913.