Regulators apparently succumbed to the idea, peddled by financiers and modern theorists, that if a little financial innovation was good, a lot must be great–even if it was far outside their capacity to monitor.
Thanks to Reihan Salam for the pointer.
Also, James Kwak explains why Europe is in worse shape than we are. It’s been years since I read Steve Roach describe the United States as the “tallest pygmy” in world currency markets, and it’s a metaphor that just seems to always apply.
Feb 13 2009
In response to Tyler Cowen's statement that Arnold Kling "wasn't guilty of anything in the first place, except perhaps having exaggerated the coercive nature of taxation," commenter Laserlight asks: Are you suggesting that taxation is not coercive? If I just ask the IRS very very nicely, I'll be able to keep my money ...
Feb 13 2009
1. In journalism, there is a term known as fact-checking. 2. When a columnist puts a person's words in quotes, that represents a fact, which ought to be checked. 3. The quote attributed to me in Paul Krugman's column was not a quote. It was a distorted paraphrase 4. A similar paraphrase to the one Krugman used ...
Feb 13 2009
Amar Bhide writes, Regulators apparently succumbed to the idea, peddled by financiers and modern theorists, that if a little financial innovation was good, a lot must be great--even if it was far outside their capacity to monitor. Thanks to Reihan Salam for the pointer. Also, James Kwak explains why Europe is in w...
READER COMMENTS
Floccina
Feb 13 2009 at 10:50am
My thought is that the Euro is the opposite of what you want. IMO you want many currencies so that if one goes bad (inflation or deflation) the others can help. Also competition might be good.
Steve Riegel
Feb 13 2009 at 11:41am
@Floccina
Don’t forget some due-diligence and oversight on the particular currencies that you choose.
Greg Ransom
Feb 13 2009 at 5:42pm
Arnold, you’ll find this piece by Leijonhufvud of interest:
http://www.voxeu.org/index.php?q=node/3065
Comments are closed.