cannot control, on a day-to-day basis, the quantity of money in circulation. Rather, I consider financial innovation over time leads to the creation of new debt instruments that fall under a reasonable definition of "money".
One way of looking at money is that, under capitalism, money buys goods, and goods sell for money, but goods do not buy goods. A simple example: I understand one can write checks against a hedge fund. So hedge funds are money.
The emergence of new forms of money illustrates why no final systems of regulations can exist in a capitalist economy. Should something like the Federal Deposit Insurance Corporation be set up to guarantee these new forms of money? If so, some capital requirements, restrictions on leverage ratios, and so on would need to be instituted. Maybe some sort of firewalls, as in the Glass-Steagall act, should be rebuilt.
This post is not about how the United States Federal Reserve - Stiglitz the Keynesian... Web review of economics: Stigliz has an article, "Capitalist Fools", in the January issue of Vanity Fair. He argues that the new depression is the result of:Firing...
- It's Never Enough Until Your He... Web review of economics: Aaron Swartz quotes a paper by Louis Pascal posing a thought experiment. I wonder if many find this argument emotionally unsatisfying. It...
- Michele Boldrin Confused About Marx... Web review of economics: Michele Boldrin has written a paper in which supposedly Marxian themes are treated in a Dynamic Stochastic Equilibrium Model (DSGE). He...
- Negative Price Wicksell Effect, Pos... Web review of economics: 1.0 IntroductionI have previously suggested a taxonomy of Wicksell effects. This post presents an example with:The cost-minimizing...
- Designing A Keynesian Stimulus Plan... Web review of economics: Some version of this New York Times article contains the following passage:"A blueprint for such spending can be found in a study financed...
- Robert Paul Wolff Blogging On Books... Web review of economics: Here Wolff provides an overview of Marx, agrees with Morishima that Marx was a great economist, and mentions books by the analytical...
- Simple and Expanded Reproduction... Web review of economics: 1.0 IntroductionThis post presents a model in which a capitalist economy smoothly reproduces itself. The purpose of such a model is not to...
- How Individuals Can Choose, Even Th... Web review of economics: 1.0 IntroductionI think of this post as posing a research question. S. Abu Turab Rizvi re-interprets the primitives of social choice theory...
0 comments:
Post a Comment