by Alexander Fink and Andreas Hoffmann Since 2009, the role of government in banking has increased substantially in Europe. This is, first, a consequence of capital injections or bailouts of private banks (for instance Dexia in Belgium, Royal Bank of Scotland in the UK, Hypo Real Estate and Commerzbank in Germany, Fortis in the Benelux, … Continue reading The Revival of State Banking in Europe
by Roger Koppl Income inequality matters. Let me say that again so you know I meant it: Income inequality matters. This statement may be surprising coming from a self-described “Austrian” economist and a “liberal” in the good old-fashioned pro-market sense. It shouldn’t be. It should be one of our issues. The surprise should be that we … Continue reading Income Inequality Matters
by Andreas Hoffmann The euro benefited Germany more than others in the zone. Germany exported and won, the others had to import German goods and lost (link). This seems to be a consensus in the world of politics. The second consensus is that a bail-out package for the euro problem children or even euro bonds … Continue reading Euro Benefited Germany More than Others in Zone
by Roger Koppl Greg Mankiw quotes a recent WSJ article: "Like many others I made the mistake of buying what I believed was 'value,'" Mr. Gwin says, adding that investors who bought at the time believed the loans were worth more than their market price. "We did not contemplate having our first liens invalidated by … Continue reading Big Players and the Rule of Law
by Mario Rizzo Where an auto bailout might lead. Here. HT to Jeremy Sapienza.
by Mario Rizzo The Social Science Research Council invited a number of economists to comment on the current financial and economic situation. I was happy to be asked and to contribute. Here it is. Above my post you will find the contributions of Robert Reich and other “prominent” economists.
by Gene Callahan I am periodically re-astonished at the brilliance of Frédéric Bastiat. His satire "The Candlemaker's Petition" is perhaps the most brilliant send-up of protectionism ever penned. And, listening to the news on the radio today, I again was made aware of how important but, apparently, difficult to grasp, is Bastiat's point about "what … Continue reading The Flawed Logic of Bailouts
by MARIO RIZZO _______________ It is said that when railways were first opened in Spain, peasants standing on the tracks were not [i]nfrequently run over; and that the blame fell on the engine-drivers for not stopping: rural experiences having yielded no conception of the momentum of a large mass moving at a high velocity. … Continue reading The Coming Slavery