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Liquidity Preference and Solidity Preference in the 19th Century
So I’ve been reading Homer and Sylla’s History of Interest Rates. One of the many fascinating things I’ve learned, is that in the market for federal debt, what we today call an inverted yield curve was...
View ArticleBoulding on Interest
Kenneth Boulding, reviewing Maurice Allais’s Économie et intérêt in 1951: Much work on the theory of interest is hampered at the start by its unquestioned assumption that “the” rate of interest, or...
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Liquidity Preference on the F Line
Sitting on the subway today, I was struck by the fact that the three ads immediately opposite me were all for what you might call liquidity services. On the left was an ad for “personal asset loans”...
View ArticleWhat to Read on Liquidity
In comments, someone asks for references behind “the point is liquidity, the point is liquidity, the point is liquidity.” So, here are my recommended readings on liquidity. Mike Beggs: “Liquidity as a...
View ArticleMinsky on the Non-Neutrality of Money
I try not to spend too much time criticizing orthodox economics. I think that heterodox people who spend all their energy pointing out the shortcomings and contradictions of the mainstream are, in a...
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OECD: Activist Shareholders Are Bad for Investment
The OECD has just released its new Business and Finance Outlook for 2015. A lot of interesting stuff there. We’ll want to take a closer look at the discussion of the problems that low interest rates...
View ArticleNo Maestros: Further Thoughts
One of the things we see in the questions of monetary policy transmission discussed in my Barron’s piece is the real cost of an orthodox economics education. If your vision of the economy is shaped by...
View ArticleAt the International Economy: What’s Wrong with Abundant Liquidity?
(I am an occasional contributor to roundtables of economists in the magazine The International Economy. This month’s topic was the possible dangers of “today’s giant swirling ocean of liquidity”.)...
View ArticleWhat Is the Stock Market For?
Elon Musk’s pending purchase of Twitter is an occasion for thinking, again, about what function stock markets perform in modern capitalism. The original form of wealth in a capitalist society is...
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