Wednesday, January 23, 2019

100% Reserve System is coming? – The Swiss Sovereign Money Referendum

The Swiss sovereign-money referendum, also known as the Sovereign-Money Initiative, which aims to creates a safe and crisis-free, yet experimental, banking system in Switzerland will be held on 10th June.

Integrating Psychology with Economics | Q&A with Hersh Shefrin & Shlomo Benartzi

This weekend is a big one for behavioral economics. This morning, Richard Thaler, laureate of The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2017, has presented his prize lecture "Integrating economics with psychology" in The Royal Swedish Academy of Sciences. And this Sunday will be the Nobel Prize Award Ceremony, Prof. Thaler will finally the well-deserved Nobel prize.To celebrate this occasion, I am honored to share with you my interview with two of the best co-authors of Prof. Thaler --- Hersh Shefrin and Shlomo Benartzi.

Why Yellen should stay as Fed Governor? | Q&A with Conti-Brown

When President Trump decided to nominate Jay Powell instead of Janet Yellen to be the next Federal Reserve Chair, my mind was full of interesting questions on how this decision impacts the institution of the Fed. In my opinion, one of the best experts to answer my question would be Peter Conti-Brown, assistant professor at The Wharton School of the University of Pennsylvania and author of one of the best book about the institution of Fed --- "The Power and Independence of the Federal Reserve".

Cochrane responds to Sumner’s discussion on inflation stabilization regimes

Nothing would make us more proud than seeing intelligent and informed people discuss the ideas we have put forth in the interview series. So it is our great honor to know that there is...

Secured and Unsecured Debt Over the Business Cycle

Filed this one under Does Debt have a role in Marco of the 21st Century? Azariadis, Kaas, and Wen (2015) first decomposed total corporate debt into secured and unsecured debt to study the relationship between...

What is Payment on Reserves Process?

The payment on reserve process proposed by Robert Hall and Ricardo Reis is a way of remunerating reserves which would give the central bank better control over the price level.The basic intuition is that...

What is the Saturated Level of Reserves?

An important feature of the reserve market is that while a lower price for reserves rises demand, it is only up to a certain level, which is v^s in the figure. This is the so-called saturated level of reserve in the reserves market.

Central Bank’s Balance Sheet and the Rise of Reserves

The above figure shows the balance sheet of four major central banks from 2005 to 2015. Above the horizontal axis is the asset side of the balance sheet, below is the liability side. All...
Raghuram Rajan at AFF 2017

Rajan on what “New Rule for Monetary Game” actually means

Raghuram Rajan, former Governer of Reserve Bank of India and now Professor of Finance at Chicago Booth, visited Hong Kong and gave a keynote speech in Asian Financial Forum last week. I am lucky...

ECB’s Praet on Eurozone’s Secular Stagnation

Peter Praet, Executive Board Member of the ECB:Central to this debate is whether the slow growth can be attributed to cyclical – and hence ultimately transitory – factors related to the financial crisis,...