How to start a crypto-bank run
(Sat, 07 Dec 2013)
An old friend, who is a crypto-currency evangelist, gave me a Bitcoin as a gift. I jokingly told him I would keep it as a 'store of value'. As the price bubbled * from 5 cents to over $1000 I began
checking several times a day and my gift became more of a burden, if not an obsession. So when I heard that China is banning direct trade in Bitcoins, I sold up and suggested my friend did,
Are there policy alternatives to Ireland's austerity?
(Wed, 20 Nov 2013)
This is a response to the PKSG presentation by Stephen Kinsella on 19th November 2013. In essence, the stock-flow-consistent approach is ‘to a very large extent an exercise in accountancy –
or perhaps logic is a more congenial word’ (Godley, 1983). The paper by Stephen Kinsella extends this approach with a five sector model, estimated using OLS. Applying different spending and tax
India's 'liquidity call'
(Tue, 12 Nov 2013)
What is the Reserve Bank of India up to? On Perry Mehrlings MOOC on the 'Economics of Money and Banking', the students are (quite rightly) asking why interest rates were rising. So while
the Fed, ECB, Band of Japan and Bank of England continue with their 'liquidity put' to the international banking system, the Reserve Bank of India is doing the opposite: a 'liquidity call'. I'm
Mathematics for New Economic Thinking
(Mon, 04 Nov 2013)
Last week, INET and the Fields Institute brought together economists and mathematicians in Toronto. The results were certainly interesting... with several economists paying their
homage to Wynne Godley, including Stephanie Kelton, Marc Lavoie, Peter Skott and Randall Wray. It was interesting to see these economists play the same stage. Some speakers felt that bad economics
Should Barclays borrow more without conditions?
(Tue, 30 Jul 2013)
Would you unconditionally invest billions more in Barclays, knowing your equity was at risk and your loan would not be re-paid if the bank got into trouble? Since you get all of the
downside, what return would you be looking for? 5%? 8%? Would you want the 14% that was given to Abu Dhabi and Qatar investors in 2008... a deal that is apparently under investigation by
both the Serious Fraud Office
There IS an alternative
(Wed, 10 Jul 2013)
I made an effort to see Frances O'Grady at the 'Alternative Mansion House speech' yesterday and was suitably impressed. As the panel said, there IS an alternative and 'unravelling
financialisation... has to be a number one priority'. Frances called for action to address low wages and 'the chronic imbalance between capital and labour' which for me is one of the best TUC
campaigns I have seen.