- “The Repeal of the Glass-Steagall Act: Myth and Reality,” by Oonagh McDonald
The Fed cannot improve the productivity or demand for labor by generating 4% or 5% rather than 2% inflation in the long run.
I’ve spent most of the last few weeks feeding and grooming my favorite hobby horse: that’s right, the Fed’s policy of encouraging banks to hoard reserves by paying above-market rates on their Fed reserve balances.
A new poll fails to uncover Americans’ opinions on Dodd-Frank and the CFPB.
The Consumer Financial Protection Bureau (CFPB) recently finalized a rule restricting the ability of financial services companies to use arbitration clauses in their contracts.
Though not yet a complete victory for The Fourth Corner Credit Union, it’s at least a giant step in that direction.
Economists jumped on the bandwagon, trotting out every imaginable half-truth and non-truth against the currency board idea.
July 19, 2017
July 7, 2017
June 23, 2017
June 15, 2017
By Matthieu Chavaz and Andrew K. Rose. Research Briefs in Economic Policy No. 67. January 11, 2017.
By Charles Calomiris and Matthew S. Jaremski. Research Briefs in Economic Policy No. 66. December 21, 2016.
By Erica Myers. Research Briefs in Economic Policy No. 64. November 23, 2016.
By Oonagh McDonald. Policy Analysis No. 804. November 16, 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 In 1999, Glass-Steagall was partially repealed by the Gramm-Leach-Bliley Act.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.
While there is an ongoing debate about what caused the 2008 financial crisis, there is little disagreement that the housing market was at the heart of the problem. In the years since the crisis, Congress passed a massive new piece of legislation, the Dodd-Frank Act, and federal financial regulators have been actively issuing new regulations. But what about the government-sponsored housing entities, known as Fannie Mae and Freddie Mac? What was their role in the crisis, and what has been done to reduce their potential harm in the future? Join us as we discuss these questions with experts from the policy world and the industry itself.
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.