- “The Repeal of the Glass-Steagall Act: Myth and Reality,” by Oonagh McDonald
- “New York’s Bank: The National Monetary Commission and the Founding of the Fed,” by George Selgin
China’s net foreign assets have fallen and been replaced by net domestic assets resulting in a deterioration of the yuan.
Tax Policy Center’s $6.2 trillion static revenue loss from the revised Trump plan is due to the CBO’s implausible assumption of endless automatic tax increases.
Recent trends in Syria’s exchange rate and implied annual inflation suggest that Bashar al-Assad’s forces are getting the upper hand.
It would be nice to think there would be a new Director at the CFPB come 2017, but in fact there is a long road ahead.
Given the consequences for mining centralization, government subsidy for digital currency mining might be added to the list of banned activities for World Trade Organization members.
November 18, 2016
November 13, 2016
November 10, 2016
November 7, 2016
By Erica Myers. Research Briefs in Economic Policy No. 64. November 23, 2016.
By Oonagh McDonald. Policy Analysis No. 804. November 16, 2016.
By James Bessen. Research Briefs in Economic Policy No. 60. September 21, 2016.
By Martin Goetz, Luc Laeven, and Ross Levine. Research Briefs in Economic Policy No. 59. August 31, 2016.
The Glass-Steagall Act was enacted in 1933 in response to banking crises in the 1920s and early 1930s. It imposed the separation of commercial and investment banking. In 1999, Glass-Steagall was partially repealed by the Gramm-Leach-Bliley Act. When the United States suffered a severe financial crisis less than a decade later, some leapt to the conclusion that this repeal was at least partly to blame. In a new study, international financial regulatory expert Oonagh McDonald argues that the notion that repealing Glass-Steagall caused the financial crisis, and that bringing it back would prevent future crises, is not supported by the facts.
The Cato Institute’s Center for Monetary and Financial Alternatives is pleased to announce another installment of its “live” edition of EconTalk. Join Russ Roberts as he interviews David Beckworth on the part that the Federal Reserve and other central banks played (and the part they ought to have played) in the Great Recession.
The lack of any monetary rule to guide policy decisions has created great uncertainty and increased financial volatility. Zero or negative interest rates and quantitative easing have created severe distortions in asset markets by increasing risk taking and politicizing credit allocation while failing to bring about robust economic growth. At Cato’s annual monetary conference, leading experts addressed the risks inherent in the unconventional monetary policies of the world’s leading central banks and the steps that need to be taken to restore long-run economic growth.
In a new paper, Cato scholar George Selgin reviews the origins, organization, and shortcomings of the National Monetary Commission, convened over a century ago, in order to suggest how a new Centennial Monetary Commission might improve upon it.