spontaneousfinance.com
On the importance of failure in free-market banking systems | Spontaneous Finance
https://spontaneousfinance.com/2013/12/29/on-the-importance-of-failure-in-free-market-banking-systems
When financial markets spontaneously emerge through voluntary human action. About Me and my Blog. 29 December, 2013. On the importance of failure in free-market banking systems. An article from Gillian Tett in the FT. Earlier this week reminded me of the importance of experimenting short-term failures for free markets to succeed in the long-term. This is a key principle of a self-sufficient and self-correcting system that has unfortunately been forgotten with the rise of the paternalist state. Weaker by ...
spontaneousfinance.com
Macro-pru, regulation, rule of law and public choice theory | Spontaneous Finance
https://spontaneousfinance.com/2015/08/10/macro-pru-regulation-rule-of-law-and-public-choice-theory
When financial markets spontaneously emerge through voluntary human action. About Me and my Blog. 10 August, 2015. Macro-pru, regulation, rule of law and public choice theory. Another rule of law-related post. It might be the anniversary of the Magna Carta that brought this topic back in fashion. Consider it as a follow-up post to my Hayekian legal principles post of a couple of weeks ago. John Cochrane has a. On the rule of law on his blog (which could have been an academic article as the pdf version.
spontaneousfinance.com
Cryptosolutions and cryptolimitations | Spontaneous Finance
https://spontaneousfinance.com/2015/08/05/cryptosolutions-and-cryptolimitations
When financial markets spontaneously emerge through voluntary human action. About Me and my Blog. 5 August, 2015. Over the past few weeks I’ve read quite a few articles and papers on Bitcoin and cryptocurrencies. Some positive, some negative, some providing useful insights as to how finance can evolve in the future. Here is a little summary that illustrates rather well the concept of ‘spontaneous order’ in financial services. With the blockchain concept of a smart contract, the exchange of the deeds and ...
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A few things I read elsewhere | Spontaneous Finance
https://spontaneousfinance.com/2015/08/13/a-few-things-i-read-elsewhere
When financial markets spontaneously emerge through voluntary human action. About Me and my Blog. 13 August, 2015. A few things I read elsewhere. Just a quick few points today. Scott Sumner has a few posts. On whether or not growth is inflationary. He says:. I have grown tired over the past few years of economists, analysts and journalists predicting that inflation would be back because RGDP growth was coming back. I missed another very confusing post by Izabella Kaminska. As Stella notes, this is why th...
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Further evidence of regulatory distortion in Standardised and IRB frameworks | Spontaneous Finance
https://spontaneousfinance.com/2015/05/13/further-evidence-of-regulatory-distortion-in-standardised-and-irb-frameworks
When financial markets spontaneously emerge through voluntary human action. About Me and my Blog. 13 May, 2015. Further evidence of regulatory distortion in Standardised and IRB frameworks. On his new blog Alt-m, George Selgin points to a piece of academic research. Published last year about ‘. The Limits of Model-Based Regulation. So what are the effects of those different regulatory capital frameworks? First, they found that. The loan-level analysis yields very similar insights. Even for the same f...
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About Me and my Blog | Spontaneous Finance
https://spontaneousfinance.com/10-2
When financial markets spontaneously emerge through voluntary human action. About Me and my Blog. About Me and my Blog. The goal of this blog is to reinject some classical liberal, free-market and laissez-faire ideas in today’s debate on banking and finance, in the tradition of thinkers that I admire such as Ludwig von Mises, F.A. Hayek, James Buchanan, Milton Friedman, John Stuart Mill, Frédéric Bastiat and Voltaire. I also contribute to the Cato Institute’s Alt-M blog. Brent Morrison says :. You might ...
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A response to Scott Fullwiler on MMT banking theory | Spontaneous Finance
https://spontaneousfinance.com/2014/01/14/a-response-to-scott-fullwiler-on-mmt-banking-theory
When financial markets spontaneously emerge through voluntary human action. About Me and my Blog. 14 January, 2014. A response to Scott Fullwiler on MMT banking theory. Following my post about the problems with the MMT and endogenous money banking theory. Scott Fullwiler, one of its proponents, briefly (and very nicely) commented on it, suggesting that I was not. Criticising the theory and that we were in fact in agreement. I beg to differ. Any advice appreciated though! Overall, I agree that Scott’s des...
spontaneousfinance.com
Banks don’t lend out reserves. Or do they? | Spontaneous Finance
https://spontaneousfinance.com/2014/01/28/banks-dont-lend-out-reserves-or-do-they
When financial markets spontaneously emerge through voluntary human action. About Me and my Blog. 28 January, 2014. Banks don’t lend out reserves. Or do they? Over the last weeks/months there has been a lot of agitation in some circles of the financial blogosphere: are banks lending out their reserves? That does not include reserves). Reserves represent 82% of the monetary base. The title couldn’t be clearer: Banks Don’t Lend Out Reserves. It looked to me at first that the view that banks don’t lend out ...
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Endogenous money creation is back with a vengeance | Spontaneous Finance
https://spontaneousfinance.com/2015/06/04/endogenous-money-creation-is-back-with-a-vengeance
When financial markets spontaneously emerge through voluntary human action. About Me and my Blog. 4 June, 2015. Endogenous money creation is back with a vengeance. About a year ago, some BoE staff produced a paper on money creation. That made some noise by (apparently) embracing an endogenous (outside) money view. A number of people, and I. Pointed out the internal inconsistencies of the theory outlined, which in fact seemed to misunderstand what the traditional money multiplier was about. Despite being ...
spontaneousfinance.com
The BoE says that money is endo, exo… or something | Spontaneous Finance
https://spontaneousfinance.com/2014/03/15/the-boe-says-that-money-is-endo-exo-or-something
When financial markets spontaneously emerge through voluntary human action. About Me and my Blog. 15 March, 2014. The BoE says that money is endo, exo or something. The Bank of England just published an already very controversial paper. Titled Money creation in the modern economy . Scott Sumner. To be fair, this might not even be an official BoE report, and might only reflect the views of some of its economists. That type of paper is published in many institutions. Where I respond to Scott Fullwiller)...
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