dunnettreader + credit   54

Psychologists at the Gate: Review of Daniel Kahneman’s Thinking, Fast and Slow (2012) | Andrei Shleifer - J of Econ Lit
Shleifer, Andrei. 2012. “Psychologists at the Gate: Review of Daniel Kahneman’s Thinking, Fast and Slow.” Journal of Economic Literature 50 (4): 1080-1091. -- downloaded via iPhone to DBOX
investors  cognition  neuroscience  reviews  books  credit  cognitive_bias  cognitive_science  financial_regulation  Minsky  risk_assessment  asset_prices  bubbles  creditors  downloaded  financial_system  credit_booms  behavioral_economics  financial_crisis 
august 2016 by dunnettreader
Pedro Bordalo, Nicola Gennaioli, Andrei Shleifer - Diagnostic Expectations and Credit Cycles | NBER - May 2016
NBER Working Paper No. 22266, Issued in May 2016 -- We present a model of credit cycles arising from diagnostic expectations – a belief formation mechanism based on Kahneman and Tversky’s (1972) representativeness heuristic. In this formulation, when forming their beliefs agents overweight future outcomes that have become more likely in light of incoming data. The model reconciles extrapolation and neglect of risk in a unified framework. Diagnostic expectations are forward looking, and as such are immune to the Lucas critique and nest rational expectations as a special case. In our model of credit cycles, credit spreads are excessively volatile, over-react to news, and are subject to predictable reversals. These dynamics can account for several features of credit cycles and macroeconomic volatility. - via DeLong
paper  paywall  business_cycles  Minsky  RBC  financial_system  capital_markets  credit  credit_booms  credit_crunch  rational_expectations  heuristics  rationality-economics  rational_choice  financial_stability  volatility  risk_assessment  interest_rates  spreads  Kindleberger 
may 2016 by dunnettreader
Matt Levine - LendingClub's Troubles Bring Back Bad Memories - Bloomberg View - May 2016
Renaud Laplanche with, awkwardly, a hammer. Photographer: Slaven Vlasic/Getty Images for Tribeca Film Festival Print Wall Street Matt Levine is a Bloomberg View…
Instapaper  financial_regulation  banking  securitization  disintermediation  lending_standards  consumer_protection  credit  from instapaper
may 2016 by dunnettreader
What It's Worth - Building a Strong Financial Future
Americans everywhere struggle to build strong financial futures for themselves and their families. The new book, What It's Worth, provides a roadmap for what families, communities and our nation can do to move forward on the path to financial well-being.
Collection of essays by people working on financial inclusion, asset-building etc. - downloaded via iPhone to DBOX
gig_economy  education-finance  philanthropy  credit  usury  financial_innovation  US_society  inequality-wealth  local_government  pensions  corporate_citizenship  mobility  banking  wages  health_care  access_to_finance  housing  financial_regulation  report  social_entrepreneurs  poverty  downloaded  welfare  US_economy  US_politics  families  mortgages  segregation  inequality  NBFI  unemployment  US_government 
april 2016 by dunnettreader
Paydaynomics — The Paydaynomist - Medium Jan 2016
The magic (money) roundaboutIn our second post we thought it would be constructive to put up a very simplified description of the economics of a payday lender…
Instapaper  access_to_finance  microfinance  OECD_economies  emerging_markets  financial_regulation  banking  credit  from instapaper
january 2016 by dunnettreader
A disrupters view on UK payday — The Paydaynomist - Medium Jan 2016
A disrupters view on UK paydayWe’d love to do it and you know you’ve always had it comingThis is our maiden post. It’s our birth story explaining why we, as two…
Instapaper  access_to_finance  UK_economy  UK_Government  financial_regulation  banking  credit  microfinance  OECD_economies  emerging_markets  from instapaper
january 2016 by dunnettreader
JAMES LIVESEY, review essay - Berkeley, Ireland and 18thC Intellectual History (Aug 2015) | Cambridge Journaks - Modern Intellectual History Modern Intellectual History - BERKELEY, IRELAND AND EIGHTEENTH-CENTURY INTELLECTUAL HISTORY - Cambridge Journals O
Modern Intellectual History / Volume 12 / Issue 02 / August 2015, pp 453-473
Department of History, School of Humanities, University of Dundee -- (1) Marc A. Hight ed., The Correspondence of George Berkeley (Cambridge University Press, 2013) (2) Scott Breuninger , Recovering Bishop Berkeley: Virtue and Society in the Anglo-Irish Context (Palgrave, 2010) (3) Daniel Carey and Christopher J. Finlay , eds., The Empire of Credit: The Financial Revolution and the British Atlantic World, 1688–1815 (Irish Academic Press, 2011) -- 18thC Irish intellectual history has enjoyed a revival in recent years. New scholarly resources, such as the Hoppen edition of the papers of the Dublin Philosophical Society and the recently published Berkeley correspondence, have been fundamental to that revival. Since 1986 the journal Eighteenth-Century Ireland: Iris an dá chultúr has sponsored a complex conversation on the meaning and legacy of the 18thC in Irish history. Work in the journal and beyond deploying “New British” and Atlantic histories, as well as continuing attention to Europe, has helped to enrich scholarly understanding of the environments in which Irish people thought and acted. The challenge facing historians of Ireland has been to find categories of analysis that could comprehend religious division and acknowledge the centrality of the confessional state without reducing all Irish experience to sectarian conflict. Clearly the thought of the Irish Catholic community could not be approached without an understanding of the life of the Continental Catholic Church. Archivium Hibernicum has been collecting and publishing the traces of that history for a hundred years and new digital resources such as the Irish in Europe database have extended that work in new directions. The Atlantic and “New British” contexts have been more proximately important for the Protestant intellectual tradition
books  reviews  article  paywall  intellectual_history  18thC  Ireland  Berkeley  British_history  Three_Kingdoms  Church_of_England  Catholics-Ireland  Protestants-Ireland  Atlantic  economic_history  financial_system  finance_capital  credit  Glorious_Revolution  colonialism  Protestant_Ascendancy 
november 2015 by dunnettreader
Egmont Kakarot-Handtke - Essentials of Constructive Heterodoxy: Financial Markets :: SSRN - June 2015
University of Stuttgart - Institute of Economics and Law -- What stands before all eyes as failed Orthodoxy is ultimately caused by the wrong answer to Mill's Starting Problem. It is now pretty obvious that one cannot put utility maximization, equilibrium, well-behaved production functions, ergodicity or any other physical or psychological or sociological or behavioral assumption into the premises. No way leads from such premises to the explanation of how the actual market economy works. The logical consequence is to discard them. Having first secured a superior formal starting point, the present paper addresses the question of how the various types of financial markets emerge from the elementary monetary circuit. -- Pages in PDF File: 33 -- Keywords: new framework of concepts, structure-centric, Law of Supply and Demand, Profit Law, IOU, complementarity of retained profit and saving, securities, bonds, common stock, mortgages, consumer financing, helicopter money -- didn't download
paper  SSRN  economic_theory  financial_system  capital_markets  money  profit  credit  asset_prices  investment  mortgages  leverage  consumer_finance  savings  equity-corporate  equity_markets  bond_markets 
september 2015 by dunnettreader
Primary and Secondary Markets by Egmont Kakarot-Handtke :: SSRN - Aug 2011, update March 2015
Also Dec 2012 Levy Economics Institute of Bard College Working Paper No. 741 -- University of Stuttgart - Institute of Economics and Law -- This paper swaps the standard behavioral axioms for structural axioms and applies the latter to the analysis of the emergence of secondary markets from the flow part of the economy. Real and nominal residuals at first give rise to the accumulation of the stock of money and the stock of commodities. These stocks constitute the demand and supply side of secondary markets. The pricing in these markets is different from the pricing in the primary markets. Realized appreciation in the secondary markets is different from income or profit. To treat primary and secondary markets alike is therefore a category mistake.-- Pages in PDF File: 26 -- Keywords: new framework of concepts, structure-centric, axiom set, residuals, real and monetary stocks, money, credit, financial saving, nonfinancial saving, net worth, financial profit, nonfinancial profit, retained profit, appreciation, wealth -- downloaded pdf to Note
paper  SSRN  economic_theory  macroeconomics  financial_system  markets  markets-structure  primary_markets  secondary_markets  asset_prices  profit  investment  interest_rates  savings  capital_gains  money  wealth  credit  liquidity  downloaded 
september 2015 by dunnettreader
Michael Minnis, Andrew G. Sutherland - Financial Statements as Monitoring Mechanisms: Evidence from Small Commercial Loans :: SSRN February 1, 2015
Both at University of Chicago - Booth School of Business -- We examine when banks use financial statements to monitor small commercial firms. Theoretical research offers competing predictions surrounding the use of financial statements as a monitoring device in such settings where reporting between firms and banks is not mandated. Using a proprietary dataset of bank information requests after loan initiation, we examine these predictions and find that financial statements are requested for only half of the loans in the sample. This variation is mediated by borrower credit risk, contracting mechanisms, such as collateral, and alternative information sources, such as tax returns. However, the relations we identify are not straightforward — the relation between borrower risk and financial statement requests is nonlinear and financial statements can be both substitutes and complements to the alternative mechanisms. Collectively, our results provide novel evidence of the fundamental demand for financial reporting in the small commercial loan market and the manner in which banks fulfill their role as delegated monitors. -- PDF File: 50 -- Keywords: loan monitoring, financial contracting, collateral, debt, relationship lending, taxes -- saved to briefcase
paper  SSRN  banking  SMEs  access_to_finance  credit  collateral  relationship_lending  intermediation  risk_management  risk_assessment  accounting  disclosure  credit_ratings 
july 2015 by dunnettreader
Arianna Lovera - La finance solidaire: Un marché civique pour le financement du travail | La Vie des idées - 15 janvier 2013
Face au marché capitaliste, il existerait un marché civique, dans le cadre duquel il est possible de financer les projets professionnels ou particuliers selon d’autres critères que celui de la maximisation du profit : c’est l’ambition de la finance solidaire, branche de l’économie solidaire qui permet de financer le travail en prenant en compte des critères extra-économiques ou éthiques. (...) les démarches d’octroi des prêts se fondent donc à la fois sur des critères bancaires traditionnels et sur des critères extra-économiques : parmi les premiers figure notamment l’analyse des bilans et des prévisionnels du sujet demandeur du prêt, dans le but de vérifier qu’il soit en condition de rembourser à la fois le prêt et les intérêts ; tandis que parmi les critères extra-économiques ou « éthiques » entrent des considérations concernant l’activité elle-même et son impact sur le tissu économico-social dans lequel elle s’inscrit. -- didn't download
article  financial_instiutions  financial_system  banking  nonprofit  solidarity  social_entrepreneurs  co-ops  access_to_finance  credit  financial_innovation  finance_capital 
june 2015 by dunnettreader
Macroprudentialism – A new Vox eBook | VOX, CEPR’s Policy Portal 15 December 2014
Dirk Schoenmaker -- overview and TOC -- Macroprudentialism is now part of the standard macroeconomic toolkit but it involves a set of relatively untested policies. This column introduces a new VoX eBook that collects the thinking of a broad range of leading US and European economists on the matter. A consensus emerges on broad objectives of macroprudential supervision, but important disagreements remain among the authors. -- downloaded pdf to Note
financial_system  financial_regulation  financial_crisis  central_banks  macroprudential_regulation  leverage  business_cycles  banking  NBFI  shadow_banking  monetary_policy  EU  Eurozone  OECD_economies  credit  mortgages  downloaded 
june 2015 by dunnettreader
Paul Beaudry, Dana Galizia, Franck Portier - Reviving the Limit Cycle View of Macroeconomic Fluctuations | NBER - June 2015
NBER Working Paper No. 21241 --There is a long tradition in macroeconomics suggesting that market imperfections may explain why economies repeatedly go through periods of booms and busts, with booms sowing the seeds of the subsequent busts. This idea can be captured mathematically as a limit cycle. For several reasons, limit cycles play almost no role in current mainstream business cycle theory. In this paper we present both a general structure and a particular model with the aim of giving new life to this mostly dismissed view of fluctuations. We begin by showing why and when models with strategic complementarities—which are quite common in macroeconomics—give rise to unique equilibrium dynamics characterized by a limit cycle. We then develop and estimate a fully-specified dynamic general equilibrium model that embeds a demand complementarity to see whether the data favors a configuration supportive of a limit cycle. Booms and busts arise endogenously in our setting because agents want to concentrate their purchases of goods at times when purchases by others are high, since in such situations unemployment is low and therefore taking on debt is perceived as being less risky. A key feature of our approach is that we allow limit-cycle forces to compete with exogenous disturbances in explaining the data. Our estimation results indicate that US business cycle fluctuations in employment and output can be well explained by endogenous demand-driven cycles buffeted by technological disturbances that render those fluctuations irregular. -- Duh!
paper  paywall  economic_theory  macroeconomics  neoclassical_economics  Keynesianism  economic_models  business_cycles  demand-side  credit  animal_spirits 
june 2015 by dunnettreader
Grateful in Baltimore | Economic Principals
The news from Baltimore had seemed pretty bleak until Friday, when a 35-year-old city prosecutor brought charges against six police officers involved in the death of Freddie Gray last month. An attorney for the Fraternal Order of Police in Baltimore complained of an “egregious rush to judgment.” Those developments got me thinking about some other measures that have been taken over the years to improve civic life in the United States. Baltimore State’s Attorney Marilyn James Mosby grew up in the Dorchester neighborhood of Boston. He mother, father, aunts, and uncles were Boston police officers. Her grandfather, Prescott Thompson, helped organize the Massachusetts Association of Minority Law Enforcement Officers, in 1968. -- Walsh tracks the steps Mosby took to get her where she now is -- a combination of hard work, talent, and deliberate openings of opportunities that had been foreclosed to women and blacks. He ebds, after a series of stats that show conditions, despite being dreadful in Freddie Gray's neighborhood, have improved significantly due to hard work of reformers over decades and changes in government policies. He ends with a blast at those who would blame the financial crisis on CRA -- instead he thinks that the implementation (albeit too little and too slow) has been one of great policy success stories in halting and beginning to reverse the deliberate, racist obstacles to wealth accumulation of African-Americans. -- saved to Instapaper
US_history  US_economy  US_politics  US_politics-race  urban_politics  War_on_Poverty  affirmative_action  segregation  discrimination  housing  African-Americans  poverty  middle_class  banking  credit  access_to_finance  savings  central_government  local_government  local_politics  Instapaper  from instapaper
june 2015 by dunnettreader
Zoltan Jakab and Michael Kumhof - Banks are not intermediaries of loanable funds - and why this matters - Zoltan Jakab and Michael Kumhof | Bank of England - Working Paper No. 529 - 29 May 2015
In the intermediation of loanable funds model of banking, banks accept deposits of pre-existing real resources from savers and then lend them to borrowers. In the real world, banks provide financing through money creation. That is they create deposits of new money through lending, and in doing so are mainly constrained by profitability and solvency considerations. This paper contrasts simple intermediation and financing models of banking. Compared to otherwise identical intermediation models, and following identical shocks, financing models predict changes in bank lending that are far larger, happen much faster, and have much greater effects on the real economy. -- downloaded pdf to Note
paper  banking  intermediation  macroeconomics  economic_models  economic_theory  financial_economics  financial_system  credit  loanable_funds  downloaded 
may 2015 by dunnettreader
Niel Jay et al - Financial markets imperfections and the SME investment dearth | VOX, CEPR’s Policy Portal - 29 June 2014
Do all firms have equal access to external financing? -- Neil Kay, Gavin Murphy, Conor O'Toole, Iulia Siedschlag, Brian O'Connell -- Small and medium-size enterprises (SMEs) often report difficulties in obtaining external finance. Based on new research, this column argues that these difficulties are not due to greater financial risks associated with SMEs. Instead, they are the result of imperfections in the market for external finance that negatively affect smaller and younger enterprises. The same research has shown that these types of firms are also the most reliant on external finance to support their investment and growth. -- they had srats on firm-level performance that allowed them, after pulling out country-level differences in economic conditions, to compare access to finance by similarly successful enterprises, differentiated by size -- as expected, the SMEs had a harder time accessing credit (as well as equity, which is a harder problem to fix given information, transaction and liquidity costs that aren't size-invariant are worse for equity) .
SMEs  Europe  EU  financial_system  banking  credit  access_to_finance  investment 
may 2015 by dunnettreader
Filippo Occhino - Debt-Overhang Banking Crises | Cleveland Fed - Dec 2014
WP 14-25 -- This paper studies how a worsening of the debt overhang distortion on bank lending can explain banking solvency crises that are accompanied by a plunge of bank asset values and by a severe contraction of lending and economic activity. Since the value of bank assets depends on economic prospects, a pessimistic view of the economy can be self-fulfilling and can trigger a financial crisis: If economic prospects are poor, bank asset values decline, the bank risk of default rises, and the associated debt overhang distortion worsens. The worsening of the distortion leads to a contraction in bank loans and a decline in economic activity, which confirms the initial pessimistic view. Signals of the existence of systemic risk include: a rise in the volatility and the presence of two modes in the probability distribution functions of the returns of bank-issued bonds and of portfolios of bank-issued bonds and equities; and a surge in the correlation between bank-issued bond returns. Macroprudential policy should limit the sensitivity of bank balance sheets to the aggregate economy and to the financial sector, using investment restrictions, capital requirements, and stress tests. In the event of a crisis, policy options include reducing the above sensitivity with commitments and guarantees, stimulating the economy, and restructuring bank capital and ownership. -- didn't download -- wonder if he uses Minsky
paper  banking  financial_crisis  leverage  deleverage  economic_growth  risk-systemic  business_cycles  bank_runs  capital_markets  bond_markets  macroprudential_regulation  macroprudential_policies  volatility  default  firesales  FDIC  Fed  demand-side  credit  business-forecasts  Minsky  financial_economics 
may 2015 by dunnettreader
Michael Hudson - Finance Capital and Debt Through the Ages - The Unz Review - April 19, 2015
RSS Michael Hudson ColumnsAuthor ArchiveBy Michael Hudson • April 19, 2015 • 5,500 Words -- transcript of interview -YouTube Renegade Economics -- discussing newest book in a series of work over the past 20 years of colloquium organized by Peabody Museum, on development of economies in earliest societies and ancient civilizations --
economic_history  ancient_history  Bronze_Age  archaeology  ancient_Egypt  ancient_Near_East  credit  creditors  debt_crisis  debtors  debt-restructuring  labor_history  landowners  land_tax  public_goods  public_enterprise  property_rights  slavery  Bible-as-history  interest_rates  usury  Instapaper  from instapaper
may 2015 by dunnettreader
Russell J. Lundholm, George Serafeim, Gwen Yu - FIN Around the World: The Contribution of Financing Activity to Profitability - July 1, 2012 :: SSRN
Russell J. Lundholm, University of British Columbia - Sauder School of Business -- George Serafeim ,Harvard University - Harvard Business School -- Gwen Yu, Harvard Business School -- Harvard Business School Accounting & Management Unit Working Paper No. 2113557 -- We study how the availability of domestic credit influences the contribution that financing activities make to a firm’s return on equity (ROE). Using a sample of 51,866 firms from 69 countries, we find that financing activities contribute more to a firm’s ROE in countries with higher domestic credit. The higher contribution of financing activities is not driven by firms taking greater leverage in these countries, but by firms realizing a higher spread (i.e., a greater difference in operating performance and borrowing cost) when more domestic credit is available. Also, we find that firms partially substitute trade credit for financial credit, with large firms exhibiting the greatest rate of substitution. For small firms, the rate of substitution improves with the country’s available domestic credit, while large firms are insensitive to this friction. The findings suggest that both country and firm-level factors have a significant impact on how financing activities contribute to corporate performance. -- Pages in PDF File: 51 -- Keywords: Domestic Credit, Financial Statement Analysis, Return on Equity, Corporate Performance -- didn't download
paper  SSRN  corporate_finance  profit  interest_rates  financial_sector_development  credit  SMEs  financial_access  trade_finance  leverage  shareholder_value 
april 2015 by dunnettreader
Lars Syll - The Bernake-Summers Imbroglio | RWER April 2015
As no one interested in macroeconomics has failed to notice, Ben Bernanke is having a debate with Larry Summers on what’s behind the slow recovery of growth rates since the financial crisis of 2007. To Bernanke it’s basically a question of a savings glut. To Summers it’s basically a question of a secular decline in the level of investment. To me the debate is actually a non-starter, since they both rely on a loanable funds theory and a Wicksellian notion of a “natural” rate of interest — ideas that have been known to be dead wrong for at least 80 years … Let’s start with the Wicksellian connection and consider what Keynes wrote in General Theory: -- helpful re Keynes' rejection of "natural rate" (in effect there's a different natural rate for each level of employment - income, so it's comparative statics that blows up when savings or investment change, rather than being able to derive new equilibrium natural rate) -- and the problems with loanable funds theory - looks especially at Minsky and Kalecki - credit creation isn't result of increased savings but increased investment. Good snips and links -- saved to Pocket
economic_theory  macroeconomics  stagnation  savings_glut  global_imbalance  interest_rate-natural  monetary_policy  monetary_theory  central_banks  credit  financial_system  financial_economics  loanable_funds  investment  accounting_IDs  equilibrium  economic_models  Keynes  Minsky  Kalecki  links  Instapaper 
april 2015 by dunnettreader
Òscar Jordà, Moritz Schularick, and Alan M. Taylor - Mortgaging the Future? | The Big Picture - Guest Post - March 27th, 2015
In the six decades following World War II, bank lending measured as a ratio to GDP has quadrupled in advanced economies. To a great extent, this unprecedented expansion of credit was driven by a dramatic growth in mortgage loans. Lending backed by real estate has allowed households to leverage up and has changed the traditional business of banking in fundamental ways. This “Great Mortgaging” has had a profound influence on the dynamics of business cycles. -- update of their 2012 article that goes back to 19thC and does more breakdown of the changes in the financial services industry -- downloaded page as pdf to Note
US_economy  economic_history  macroeconomics  financial_system  financial_innovation  financial_crisis  housing  mortgages  credit  debt  debt_crisis  business_cycles  financialization  NBFI  real_estate  banking  macroprudential_policies  macroprudential_regulation  macroeconomic_policy  downloaded 
march 2015 by dunnettreader
Dr. Ahmad Shafaat - What is Riba | Islamic Perspectives
Begun January 2005, slowly adding additional chapters -- This bookmark is for the Introduction -' Planned Contents -- Part I – RIBA IN THE QUR`AN *-* I - The Qur`an And The Authentic Ahadith Do Not Define Riba. *-* II - Riba In Pre-Islamic Arabia. *-* III - Riba In The Qur`an – A Detailed Examination of Relevant Verses [PDF Document] *-* IV - Riba In The Qur`an – A Closer Examination of Some Relevant Issues. *-* V- Usury/Interest In Other Societies. **--** Part II – RIBA IN THE HADITH. *-* VI -Ahadith About Husn al-Qada` *-* VII- Ahadith About Riba – An Overview. *-* VIII -Ahadith About Riba – An Examination Of Their Transmission (Naql) *-* IX- Ahadith About Riba – Making Sense Of Them. *-* Conclusion. -- We can hardly doubt that in the Qur`an riba is some kind of increase in the amount of a loan. But what is its precise nature? The commonly held traditional view is that riba is simply interest, that is, any increase in the loan required by the lender as a condition for advancing the loan. But many commonly held views, when they are scrutinized in the light of three primary sources of Islam – the Qur`an, authentic ahadith, and reason -- turn out to be either fundamentally flawed or harmful oversimplifications. Is the commonly accepted definition of riba one of the exceptions? Unfortunately, not. It turns out that this definition is a harmful oversimplification.
Islam  Islamic_law  Islamic_finance  credit  creditors  investment  investors  risk  risk_premiums  interest_rates  usury  theology  legal_reasoning  Qur'an  Hadith 
march 2015 by dunnettreader
James Chandler, ed. - The Cambridge History of English Romantic Literature (pbk 2012) | Cambridge University Press
The Romantic period was one of the most creative, intense and turbulent periods of English lit (..) revolution, reaction, and reform in politics, and by the invention of imaginative literature in its distinctively modern form. (..) an engaging account of 6 decades of literary production around the turn of the 19thC. Reflecting the most up-to-date research, (..) both to provide a narrative of Romantic lit and to offer new and stimulating readings of the key texts. (...) the various locations of literary activity - both in England and, as writers developed their interests in travel and foreign cultures, across the world. (..) how texts responded to great historical and social change. (..) a comprehensive bibliography, timeline and index, **--** Choice: 50 years ago, lit studies was awash in big theories of Romanticism, (e.g. M. H. Abrams, Geoffrey Hartman, Harold Bloom); 2 decades later, Marilyn Butler argued that the very label "Romantic" was "historically unsound." This collection suggests that no consensus has yet emerged: instead, the best of the essays suggest continuities with periods before and after. Rather than big theories, (..) kaleidoscopic snapshots of individual genres (the novel, the "new poetry," drama, the ballad, children's literature); larger intellectual currents (Brewer ... on "sentiment and sensibility"); fashionable topics (imperialism, publishing history, disciplinarity); and--most interesting--the varying cultures of discrete localities (London, Ireland, Scotland).(..) an excellent book useful not as a reference resource, (..) but for its summaries of early-21st-century thinking about British lit culture 1770s-1830s. -- downloaded pdfs of front matter and excerpt to Note
books  English_lit  Romanticism  literary_history  literary_language  literary_theory  lit_crit  18thC  19thC  British_history  cultural_history  literature-and-morality  politics-and-literature  French_Revolution-impact  sociology_of_knowledge  Enlightenment  religious_lit  genre  gender_history  historicism  art_history  art_criticism  novels  rhetoric-writing  intellectual_history  morality-conventional  norms  sensibility  social_order  public_sphere  private_life  lower_orders  publishing  publishing-piracy  copyright  British_politics  British_Empire  Scotland  Scottish_Enlightenment  Ireland  Ireland-English_exploitation  landed_interest  landowners-Ireland-Anglo_elite  authors  authors-women  political_culture  elite_culture  aesthetics  subjectivity  self  self-fashioning  print_culture  readership  fashion  credit  poetry  literary_journals  historical_fiction  historical_change  reform-political  reform-social  French_Revolution  anti-Jacobin  Evangelical  literacy  theater  theatre-sentimental  theatre-politics  actors  downloaded 
february 2015 by dunnettreader
JAMES LIVESEY, Review Essay - BERKELEY, IRELAND AND 18thC INTELLECTUAL HISTORY (Dec 2014) | Modern Intellectual History - Cambridge Journals Online
Department of History, School of Humanities, University of Dundee -- Books reviewed: (1) Marc A. Hight ed., The Correspondence of George Berkeley (Cambridge University Press, 2013), (2) Scott Breuninger , Recovering Bishop Berkeley: Virtue and Society in the Anglo-Irish Context (Palgrave, 2010), (3) Daniel Carey and Christopher J. Finlay , eds., The Empire of Credit: The Financial Revolution and the British Atlantic World, 1688–1815 (Dublin: Irish Academic Press, 2011) -- 18thC Irish intellectual history has enjoyed a revival in recent years. New scholarly resources, such as the Hoppen edition of the papers of the Dublin Philosophical Society and the recently published Berkeley correspondence, have been fundamental to that revival. Since 1986 the journal Eighteenth-Century Ireland: Iris an dá chultúr has sponsored a complex conversation on the meaning and legacy of the 18thC in Irish history. Work in the journal and beyond deploying “New British” and Atlantic histories, as well as continuing attention to Europe, has helped to enrich scholarly understanding of the environments in which Irish people thought and acted. The challenge facing historians of Ireland has been to find categories of analysis that could comprehend religious division and acknowledge the centrality of the confessional state without reducing all Irish experience to sectarian conflict. Clearly the thought of the Irish Catholic community could not be approached without an understanding of the life of the Continental Catholic Church. Archivium Hibernicum has been collecting and publishing the traces of that history for a hundred years and new digital resources such as the Irish in Europe database have extended that work in new directions. The Atlantic and “New British” contexts have been more proximately important for the Protestant intellectual tradition. -- paywall
articles  books  reviews  paywall  intellectual_history  18thC  Ireland  Protestants-Ireland  Catholics-Ireland  Berkeley  Anglo-Irish_constitution  British_politics  reform-social  reformation_of_manners  virtue_ethics  civic_virtue  Protestant_Ascendancy  Whigs-oligarchy  Church_of_England  Church_of_Ireland  patronage  networks-political  networks-social  networks-information  fiscal-military_state  public_finance  taxes  credit  financial_innovation  financial_sector_development  economic_history  political_economy  politics-and-religion  politics-and-money 
february 2015 by dunnettreader
Nick Bunker - Mortgage fraud, income growth, and credit supply | Feb 11, 2015 - Washington Center for Equitable Growth
Earlier this year, a new working paper cast doubt on one of the dominant explanations of the reasons for the 2002-2006 housing bubble in the United States—that growth in mortgage credit and income growth uncoupled as credit flowed to areas to with declining income growth. Instead, economists Manuel Adelino of Duke University, Antoinette Schoar of the Massachusetts Institute of Technology, and Felipe Severino of Dartmouth College, argue that the cause of the increase on household debt was a classic speculative mania. But a new paper by economists Atif Mian of Princeton University and Amir Sufi of the University of Chicago questions this view of the debt build-up. The seeming flaws in the dominant narrative that an increase in the supply of credit caused the bubble, they say, can be explained by one thing: mortgage fraud. -- Bunker links to both papers - didn't download but will follow debate via "House of Debt" blog
paper  21stC  US_economy  Great_Recession  financial_crisis  housing  securitization  capital_markets  mortgages  distribution-income  distribution-wealth  asset_prices  bubbles  fraud  GSEs  bankruptcy  debt  investors  yield  risk  credit  rating_agencies  credit_ratings  speculative_finance  EF-add  from instapaper
february 2015 by dunnettreader
Special Issue: Microfinance -- AEAweb: American Economic Journal: Applied Economics Vol. 7 No.1, Jan 2015
Abstract of introductory article -- Causal evidence on microcredit impacts informs theory, practice, and debates about its effectiveness as a development tool. The six randomized evaluations in this volume use a variety of sampling, data collection, experimental design, and econometric strategies to identify causal effects of expanded access to microcredit on borrowers and/or communities. These methods are deployed across an impressive range of locations—six countries on four continents, urban and rural areas—borrower characteristics, loan characteristics, and lender characteristics. Summarizing and interpreting results across studies, we note a consistent pattern of modestly positive, but not transformative, effects. We also discuss directions for future research. -- broad conclusion to be expected contra the hype -- but focus still seems to be on *credit* (with assumptions re micro and SME entrepreneurs and business formation) rather than access to services -- also question whether the former Yugoslavia study really dealt with "micro", likely the sort of labeling of SMEs as micro like Aftab's programs
journals-academic  article  paywall  microfinance  access_to_finance  development  economic_growth  economic_sociology  development-impact  RCT  econometrics  causation  causation-social  financial_sector_development  financial_economics  financial_access  institutional_economics  banking  credit  financial_innovation  SMEs  access_to_services  EF-add 
january 2015 by dunnettreader
JULIAN GOODARE - The debts of James VI of Scotland | JSTOR - The Economic History Review New Series, Vol. 62, No. 4 (NOVEMBER 2009), pp. 926-952
James VI (1567–1625) was chronically indebted, and this caused him frequent problems. This article presents two series of systematic data that together indicate the main contours of his indebtedness: (1) end-of-year deficits, and (2) hived-off debts which the Crown left unpaid for long periods (sometimes permanently). The hived-off debts, reconstructed individually, constitute a narrative of fiscal policy-making. Instead of a large and catastrophic bankruptcy, James in effect had numerous small bankruptcies. He benefited from an emerging structure of Scottish domestic credit. He eventually repaid many of his debts after succeeding to the English throne in 1603. -- huge bibliography, mostly Scottish history -- downloaded pdf to Note
article  jstor  economic_history  political_history  16thC  17thC  James_I  Scotland  Britain  public_finance  fiscal_policy  deficit_finance  sovereign_debt  Crown_finance  financial_system  credit  bankruptcy  bibliography  downloaded  EF-add 
january 2015 by dunnettreader
Charles Walton, « Politics and Economies of Reputation », | Books and Ideas - La Vie des Idèes, 30 October 2014
Reviewed: (1) Jean-Luc Chappey, Ordres et désordres biographiques: Dictionnaires, listes de noms, réputation des Lumières à Wikipédia, Seyssel: Champ Vallon, 2013. (2) Clare Haru Crowston, Credit, Fashion, Sex: Economies of Regard in Old Régime France, Durham, NC: Duke University Press, 2013. -- Historians of 18thC France have become increasingly interested in the ‘individual’. Inspired by the conceptual framework of such theorists as Foucault and Bourdieu, research on identity, self-fashioning and reputation has in recent years become bound up with the study of historical processes (social mobility, rising consumption, public opinion) that reveal a historically unstable and contingently produced ‘self’. The two monographs under consideration here investigate these themes, especially the problem of ‘regard’, that is, how individuals saw and assessed each other. Although the authors analyze different phenomena – biographical notices for Jean-Luc Chappey, fashion and credit for Clare Haru Crowston – both explore the practices that developed in the 18thC and early 19thC for representing and managing reputations. To be sure, the use of print and fashion to assert one’s standing in society had existed for centuries. Two developments, however, altered their importance in the 18thC. First, the consumer revolution, which made print and fashion increasingly accessible. This revolution offered new means for understanding the world (print) and expressing oneself (fashion). Second, the rise of a critical public sphere in which moral assessments about individuals – what they wrote, for example, and what they wore – became increasingly difficult to control. Struggles over social standing took place in an increasingly competitive world, where textual accounts of one’s life and work (Chappey) and sartorial strategies (Crowston) became vulnerable to the vicissitudes of market forces and public opinion. -- downloaded pdf to Note
books  reviews  18thC  19thC  France  cultural_history  social_history  social_order  status  identity  self  self-fashioning  print_culture  readership  fashion  credit  public_sphere  celebrity  consumers  consumerism  public_opinion  reputation  social_capital  Bourdieu  Foucault  biography  downloaded  EF-add 
january 2015 by dunnettreader
Secured Transactions Reform in the Anericas | Institute of the Americas
Diwnloaded to iPhone report of conference co-sponsored by Institute of the Americas and IFC in 2013 -- url is for general page dealing with STR program -- Secured Transactions Reform in Latin America and the Caribbean 2013 - What is one of the single largest barriers to growth for SMEs in the developing world? The lack of access to finance at reasonable rates in the formal banking market. Access to credit promotes productive capacity, competitiveness, job creation and ultimately poverty alleviation
website  paper  downloaded  financial_innovation  access_to_finance  financial_sector_development  Latin_America  SMEs  securitization  banking  legal_system  reform-legal  credit  collateral 
january 2015 by dunnettreader
Kose, Prasad, Rogoff & Wei (2009) - Financial Globalization: A Reappraisal
downloaded to iPhone - see also papers citing this - The literature on the benefits and costs of financial globalization for developing countries has exploded in recent years, but along many disparate channels with a variety of apparently conflicting results. There is still little robust evidence of the growth benefits of broad capital account liberalization, but a number of recent papers in the finance literature report that equity market liberalizations do significantly boost growth. Similarly, evidence based on microeconomic (firm- or industry-level) data shows some benefits of financial integration and the distortionary effects of capital controls, but the macroeconomic evidence remains inconclusive. At the same time, some studies argue that financial globalization enhances macroeconomic stability in developing countries, but others argue the opposite. This paper attempts to provide a unified conceptual framework for organizing this vast and growing literature, particularly emphasizing recent approaches to measuring the catalytic and indirect benefits to financial globalization. Indeed, it argues that the indirect effects of financial globalization on financial sector development, institutions, governance, and macroeconomic stability are likely to be far more important than any direct impact via capital accumulation or portfolio diversification. This perspective explains the failure of research based on cross-country growth regressions to find the expected positive effects of financial globalization and points to newer approaches that are potentially more useful and convincing.
credit  financial_innovation  spreads  financial_crisis  contagion  investment  financial_sector_development  interest_rates  FDI  emerging_markets  download  bubbles  FX  capital_flows  monetary_policy  fiscal_policy  financial_system  IMF  banking  NBFI  business_cycles  sovereign_debt  global_economy  macroeconomics  globalization 
january 2015 by dunnettreader
Jordà, Schularick and Taylor - Betting the House - NBER working paper - SSRN
They look at link between loose monetary policy, real estate lending, housing bubbles and financial instability. No surprise, they're correlated. Their added twist is to note that the same egfect can be produced by low intetest rates in effect "imported" by countries maintaining fixed exchange rates even if their domestic economic management is kosher - in a way, importing a business cycle snd misallocation of investment. The effect of these correlations to produce financial instability has increased over the decades. (undoubtedly exacerbated by the push to open capital accounts) SSRN version posted simultaneously with NBER version on SSRN - downloaded pdf to iPhone
capital_flows  business_cycles  credit  21stc  interest_rates  19thc  financial  crisis  financialization  monetary_policy  20thc  paper  asset  prices  bubbles  globalization  Pocket  real_estate  FX  SSRN  downloaded 
january 2015 by dunnettreader
Lapavitsas, Costas - Banks and the Design of the Financial System: Underpinnings in Steuart, Smith and Hilferding (2002) - SOAS Research Online (School of Oriental and African Studies)
Banks in bank-based financial systems tend to engage in long-term lending that requires substantial own capital to guarantee solvency. In market-based systems, in contrast, they tend to undertake short-term lending that requires adequate reserves to guarantee liquidity. Theoretical support for these two approaches to banking can be found in, respectively, Steuart and Smith. The innovative Marxist analysis of banking by Hilferding combined elements of both. Banks in the early stages of development are Smith-like but, as the scale of fixed investment in industry grows, they lend long-term and become Steuart-like, also developing ‘commitment’ relations with enterprises. However, Hilferding also implied, erroneously, that financial systems historically evolve in a bank-based direction. Based on Hilferding but also drawing on Japanese Marxist analysis of finance, it is suggested instead that bank behaviour in bank-based systems results from institutional changes imposed by policy-makers in order to achieve ‘catching up.’ -- Item Type: Monographs (Working Paper) -- Keywords: Adam Smith, James Steuart, Rudolf Hilferding, banking theory, Marxist theory of finance -- SOAS Departments & Centres: Faculty of Law and Social Sciences > Department of Economics -- downloaded pdf to Note
paper  intellectual_history  economic_history  18thC  19thC  20thC  21stC  financial_system  finance_capital  banking  financial_economics  Marxist  leverage  credit  money_market  industrialization  investment  liquidity  financial_crisis  capital_adequacy  financial_sector_development  financial_innovation  Smith  Steuart_James  Hilferding  downloaded  EF-add 
october 2014 by dunnettreader
Nitzan, Jonathan - From Olson to Veblen: The Stagflationary Rise of Distributional Coalitions (1992) | bnarchives
Paper read at the annual meeting of the History of Economics Society. Fairfax, Virginia. 1-2 June (1992). pp. 1-75. -- This essay deals with the relationship between stagflation and the process of restructuring. The literature dealing with the interaction of stagnation and inflation is invariably based on some explicit or implicit assumptions about economic structure, but there are very few writings which concentrate specifically on the link between the macroeconomic phenomenon of stagflation and the process of structural change. Of the few who dealt with this issue, we have chosen to focus mainly on two important contributors – Mancur Olson and Thorstein Veblen. The first based his theory on neoclassical principles, attempting to demonstrate their universality across time and place. The second was influenced by the historical school and concentrated specifically on the institutional features of modern capitalism. Despite the fundamental differences in their respective frameworks, both writers arrive at a similar conclusion, namely, that the phenomenon of stagflation is inherent in the dynamic evolution of collective economic action, particularly in the rise and consolidation of 'distributional coalitions.' -- Keywords: absentee ownership, intangible assets, big business, bonds, capital, accumulation, capitalism, collective action, collusion, corporation, credit, degree of monopoly, distributional coalitions, excess capacity, finance, immaterial wealth, income distribution, industry, inflation, institutions, interest, labour, liabilities, machine process, material wealth, neoclassical economics, normal rate of return, power, price, profit, productivity, property, sabotage, scarcity, stagnation, stagflation, stocks, tangible assets, technology, United States, value
paper  US_economy  economic_history  economic_theory  institutional_economics  Veblen  political_economy  Olson_Mancur  public_choice  collective_action  capital  capitalism  power  power-asymmetric  business-and-politics  interest_groups  interest_rates  interest_rate-natural  profit  corporate_ownership  managerialism  industry  production  productivity  productivity-labor_share  sabotage-by_business  distribution-income  distribution-wealth  wealth  asset_prices  financial_system  credit  competition  monopolies  oligopoly  prices  inflation  stagnation  property  technology  capital_markets  antitrust  neoclassical_economics  change-economic  change-social  levels_of_analyis  mesolevel  microfoundations  downloaded  EF-add 
october 2014 by dunnettreader
Tobias Adrian and Nellie Liang - Monetary Policy, Financial Conditions, and Financial Stability | Federal Reserve Bank of New York - Staff Reports Number 690 - September 2014
In the conduct of monetary policy, there exists a risk-return trade-off between financial conditions and financial stability, which complements monetary policy’s traditional trade-off between inflation and real activity. The trade-off exists even if monetary policy does not target financial stability considerations independently of its inflation and real activity goals, because risks to future financial stability are increased by the buildup of financial vulnerabilities from persistent accommodative monetary policy when the economy is close to potential. We review monetary policy transmission channels and financial frictions that give rise to this trade-off between financial conditions and financial stability, within a monitoring program across asset markets, banking firms, shadow banking, and the nonfinancial sector. We focus on vulnerabilities that affect monetary policy’s risk-return trade-off, including 1) pricing of risk, 2) leverage, 3) maturity and liquidity mismatch, and
4) interconnectedness and complexity. We also discuss the extent to which structural and time-varying macroprudential policies can counteract the buildup of vulnerabilities, thus mitigating monetary policy’s risk-return trade-off. -- downloaded pdf to Note
paper  Fed  US_economy  macroeconomics  financial_system  monetary_policy  financial_stability  macroprudential_policies  macroprudential_regulation  money_market  capital_markets  banking  shadow_banking  NBFI  investors  institutional_investors  credit  risk_premiums  leverage  money_supply  monetarism  interest_rates  business_cycles  demand-side  investment  consumer_demand  open_market_operations  downloaded  EF-add 
october 2014 by dunnettreader
Sunanda Sen - The Meltdown of the Global Economy: A Keynes-Minsky Episode? - Working Paper No. 623 | Levy Economics Institute | September 2010
The paper begins with some theoretical concerns relating to factors that could trigger a crisis similar to the global economic crisis that began in 2008. The first concern relates to the deregulated financial institutions and the growing uncertainty that can be witnessed in these liberalized financial markets. The second relates to financial engineering with innovations in these markets, simultaneously providing cushions against risks while generating flows of liquidity that remain beyond the conventional sources of bank credit. Interpreting the role of uncertainty, one can observe the connections between investment and finance, both of which are subject to changes in the state of expectations. The initial formulation can be traced back to Keynes’s General Theory, where liquidity preference is linked to asset prices and new investments. The Keynesian analysis was reformulated in 1986 by Minsky, who introduced the possibility of sourcing external finance through debt, which further adds to the impact of uncertainty. Minsky’s characterization of deregulated financial markets considers the newfangled sources of nonbank credit, especially with the involvement of banks in the securities market under the universal banking model. As for the institutional arrangements that provide for profits on transactions, financial assets bought and sold in the primary market as initial public offerings of stocks are usually transacted later, in the secondary market, where these are no longer backed by physical assets.In the upswing, finance creates a myriad of financial claims and liabilities, and thus becomes increasingly remote from the real economy, while innovations to hedge and insulate assets continue to proliferate in the financial market, especially in the presence of uncertainty. The paper looks especially at the US. This is appended by a stylized account of the turn of events in terms of a theoretical model that highlights the role of uncertainty in the process. -- Associated Program: Monetary Policy and Financial Structure -- downloaded pdf to Note
paper  economic_theory  financial_crisis  bubbles  Great_Recession  financial_system  finance_capital  financialization  financial_innovation  banking  financial_regulation  derivatives  risk  risk-systemic  uncertainty  expectations  capital_markets  NBFI  intermediation  speculative_finance  securitization  Glass-Steagal  investment  investors  asset_management  real_economy  real_estate  Keynes  liquidity  Minsky  credit  debt  deleverage  leverage  asset_prices  banking-universal  disintermediation  money_market  Ponzi_finance  IPOs  secondary_markets  fragility  resilience  downloaded  EF-add 
october 2014 by dunnettreader
Coppola Comment: Debt hysteria - September 30, 2014
The global debt glut described in the Geneva 16 report, and the global saving glut described by Bernanke, are the same thing. The authors note that growth has been slowing in developed countries since 1980. Indeed it has - and during that time capital ownership and indebtedness have been increasing in tandem, as we might expect since they are opposite sides of the same coin. The report cites numerous analyses that show high debt levels - public AND private - tending to impede growth as resources that could have been turned to productive investment are spent on debt service. Secular stagnation is as much a consequence of over-indebtedness as it is of excess capital. -- When the private sector is highly indebted, saving can take the form of paying off debt. If the government runs a surplus, therefore, it impedes deleveraging in the private sector, and may even force some sectors (typically the poor) to increase debt. Reducing the sovereign debt not only reduces saving in the private sector, it comes at the price of continued and possibly rising indebtedness. The report rightly notes that transferring debt from the private to the public sector, as the US has done, isn't deleveraging. But transferring it back again isn't deleveraging either. And as transferring it back again is likely only to be possible with extensive sovereign guarantees (the UK's Help to Buy, for example), whose debt is it really, anyway? Reports such as this, that look on debt as a problem and ignore the associated savings, fail to address the real issue. The fact is that households, corporations and governments like to have savings and are terrified of loss. Writing down the debt in which people invest their savings means that people must lose their savings. THIS is the real "shock, horror". This is what people fear when they worry about a catastrophic debt default. This is what the world went to great lengths to prevent in 2008. The problem is not the debt, it is the savings.
global_imbalance  global_economy  international_political_economy  international_finance  savings  investment  institutional_investors  debt  debt-restructuring  debtors  credit  creditors  equity  equity-corporate  sovereign_debt  default  risk  risk-systemic  inflation  austerity  economic_growth  stagnation  OECD_economies  emerging_markets  banking  capital_markets  capital_adequacy  government_finance  leverage  deleverage  property_rights  pensions  interest_rates  Evernote 
october 2014 by dunnettreader
An Assessment of the FRBNY DSGE Model's Real-Time Forecasts, 2010-13 (Part 4 of 5) | Liberty Street Economics - September 25, 2014
Matthew Cocci, Marco Del Negro, Stefano Eusepi, Marc Giannoni, and Sara Shahanaghi -- This series examines the Federal Reserve Bank of New York’s dynamic stochastic general equilibrium model—a structural model used by Bank researchers to understand the workings of the U.S. economy and provide economic forecasts. In predicting output growth, the model’s forecasts have been comparable to, if not better than, the median Survey of Professional Forecasters forecasts. To some extent, the SPF has been too sanguine about growth, especially in the medium-long term, as professional forecasters have repeatedly anticipated a strong recovery in the aftermath of the financial crisis. Conversely, the DSGE model has been consistently predicting a very slow recovery following the financial shock. As a consequence, for each of the years considered, the SPF produced overly optimistic growth forecasts, which, as time passed and more information was accumulated, declined to where the DSGE model had been all along. (Bear in mind that some of the misses reflect the comprehensive revisions of the national income and product accounts data.) The model’s forecasts of continued weak growth reflect financial headwinds that have lasted well past the end of the recession. These headwinds stem from the high perceived riskiness of borrowers—a credit friction that disrupts financial intermediation—and the low perceived return on physical investment, as described in more detail in the previous post in this series. Overall, the DSGE model has historically performed as well as—if not better than—consensus forecasters in predicting macroeconomic trends. Continual refinement of the model specification has helped account for the effects of credit frictions and changes in the perceived risks in the economy as drivers of the Great Recession, enabling the model to predict a slow recovery much earlier than the median SPF forecaster.
US_economy  economic_history  macroeconomics  Great_Recession  modelling  economic_growth  financial_crisis  financial_system  credit  intermediation  financial_economics 
september 2014 by dunnettreader
Julio J. Rotemberg - The Federal Reserve's Abandonment of its 1923 Principles | NBER Working Paper No. 20507, September 2014
This paper studies the persistence and some of the consequences of the eventual abandonment by the FOMC of the principles embedded in the Federal Reserve’s Tenth Annual Report of 1923. The three principles I focus on are 1) the discouraging of speculative lending by commercial banks, 2) the desire to meet the credit needs of business and 3) the preference of a focus on credit over a focus on monetary aggregates. I show that the first two principles remained important in FOMC deliberations until the mid-1960’s. After this, the FOMC also spent less time discussing the composition of bank loans. -- paywall
paper  paywall  US_economy  economic_history  central_banks  Fed  financial_regulation  credit  banking  speculative_finance  monetary_policy  macroprudential_policies 
september 2014 by dunnettreader
Giancarlo Bertocco - Some Observations about the Loanable Funds Theory (2006)
(Department of Economics, University of Insubria, Italy) The objective of this paper is to highlight the limits of the Loanable Funds Theory based on the arguments used by Keynes to respond to the criticism levelled by Ohlin and Robertson at the keynesian interest rate theory. I believe that these arguments make it possible to elaborate a keynesian theory of credit that is capable of highlighting aspects of the non-neutrality of money that do not emerge from the General Theory, which is focused on the liquidity preference theory. The work is divided into five parts. In the first part the most important aspects of the LFT are described, while in the second one Keynes’s criticism of the LFT is set out. The third part critically analyses Tsiang’s view that supports the validity of Robertson’s position over that of Keynes; the last two sections contain a description of the characteristics of a monetary economy elaborated on the basis of Keynes’s critique of the LFT. - via Naked Keynesianism - downloaded pdf to Note
macroeconomics  economic_theory  economic_models  money  money_market  central_banks  liquidity  interest_rates  banking  credit  Keynes  New_Keynesian  downloaded  EF-add 
september 2014 by dunnettreader
Blogging Steve Keen's "Debunking Economics" | Unlearning Economics (posts from 2012)
Chapter by chapter commentary - Keen takes on fallacies or weaknesses in (mostly) neoclassical economics one by one - so may in one chapter accept as a necessary assumption to the principle or method he's debunking, something he's debunked in another chapter. So the chapter by chapter approach fits with examining Keen's points. Keen's own models focus on endogenous money in a credit based market, heavily influenced by Minsky.
intellectual_history  20thC  social_sciences-post-WWII  economic_theory  economic_models  macroeconomics  neoclassical_economics  microeconomics  Minsky  Great_Depression  Great_Recession  banking  financial_system  financial_crisis  debt  credit  money  money_supply  central_banks  demand  economic_growth  EF-add 
august 2014 by dunnettreader
JW Mason - The Slack Wire: Liquidity Preference on the F Line - August 2014
Orthodox macroeconomics treats money as neutral in long run but provision of credit and liquidity has real effects on economic activity. And what's the mechanism for increased money supply producing nothing but price increase in long run. Long excerpts from Hume who starts out with neutral money taking it to logical conclusion that banks should just lock up deposits. And later remarking on the positive effects of secured lines of credit. Interesting discussion in comments on microfoundations of mainstream macro producing contradictions
macroeconomics  money  money_supply  liquidity  credit  microfoundations  EF-add 
august 2014 by dunnettreader
Abigail Swingen, review - Sheryllynne Haggerty. "Merely for Money"? Business Culture in the British Atlantic, 1750-1815 | H-Net Reviews
Haggerty demonstrates that successful merchants in the 18thC British Atlantic world operated in a culture that had socially constructed expectations for their behavior. Those who did not conform to that culture could find themselves left out of it altogether. This is most effectively demonstrated in her chapter on obligation. ...“obligation” did not simply reflect the necessity to pay off a debt. For some larger merchant houses, it meant not calling in debts too quickly especially at times of crisis -- 18thC merchants, although largely self-regulating, expected and desired a certain level of regulation and protection from the British state. This was especially true in terms of overseas and colonial trades. ...merchants felt that the state was “obligated” to protect them, considering the various ways they contributed to the imperial economy. --ultimately one questions how these crises, and the sophisticated ways the merchants responded to them, compared to earlier similar moments of upheaval. Overseas (especially colonial) merchants had formed lobbying groups, both informal and formal, since at least the late17thC, as the work of Alison Olson and Will Pettigrew demonstrates. Because there is little consideration of change over time, however, one does not get a clear sense of the overall significance of the period in question. -- one is left wondering about the broader implications of the ways in which merchants confronted and negotiated with the “formal” empire. The merchants were caught up in a transformative period in the transition to a global capitalist economy. -- high marks for archival work and applying Greif (new institutional_economics) and folks like Hobbit re business concepts
books  reviews  economic_history  18thC  19thC  British_history  British_politics  Atlantic  West_Indies  American_colonies  American_Revolution  slavery  merchants  mercantilism  protectionism  credit  creditors  trade-policy  trade_finance  British_Empire  British_foreign_policy  interest_groups  economic_culture  institutional_economics  obligation  business-and-politics  capitalism  globalization  global_economy  EF-add 
june 2014 by dunnettreader
Paul Beaudry, Dana Galizia, Franck Portier - Reconciling Hayek's and Keynes' views of recessions | vox , 1 June 2014
Stating the obvious but they've got a model with numbers and charts -- Hayek viewed recessions as working out excessive investments; Keynes viewed them as demand shortages. This column argues that they may not be as mutually exclusive as many think. Recessions may reflect periods of liquidation but this may be associated with inefficient adjustment involving unemployment and precautionary savings. Simulative policy may be desirable even if it delays the full recovery.
paper  economic_theory  economic_models  macroeconomics  economic_growth  investment  credit  Great_Recession  unemployment  Keynes  Hayek  downloaded 
june 2014 by dunnettreader
Natasha Glaisyer - "A due Circulation in the Veins of the Publick": Imagining Credit in Late 17thC and Early 18thC England | JSTOR: The Eighteenth Century, Vol. 46, No. 3 (FALL 2005), pp. 277-297
Thinks too much has been made of fickle Lady Credit and Pocock's Machiavelli reading of anti commerce. Shows other metaphors, eg circulation of blood, and rich pamphlet literature of proposals for dealing with credit necessary for commercial prosperity as well as state financing - shows people weren't such ninnies as Pocock's version would have it. -- downloaded pdf to Note
article  jstor  economic_history  economic_culture  political_economy  17thC  18thC  British_history  sovereign_debt  credit  money_supply  capital_markets  money_market  political_press  public_opinion  public_finance  public_policy  fiscal-military_state  commerce  Pocock  downloaded  EF-add 
january 2014 by dunnettreader
Frances Coppola - Zombie alert! | Pieria Dec 2013
There is a prevalent view that part of the reason for the UK’s slow recovery and poor productivity is the existence of large numbers of companies that should have died in the recession. “Zombie firms in danger of strangling the economy”, screams one newspaper headline. And another warns of the “Zombie businesses spreading like a virus”..... Papworth expresses some puzzlement that the rate of corporate insolvency appears low. His puzzlement is understandable. It is not low. He is looking at the wrong data. And because of this, the rest of the paper is seriously flawed. I am not going to argue with his use of Austrian business cycle theory, or Schumpeter’s theory of “creative destruction”. But since he is using the wrong data, he has not put together a convincing case for the existence of the zombies he says need to be cleared out....... Also, because it is widely believed that zombies are kept alive not just by low interest rates, but by damaged banks unable to take losses, there are calls for banks to “end forbearance” even if it means they fail themselves. This is madness. Every bank and building society in the UK has corporate debt on its books, and almost every bank and building society in the UK has a damaged balance sheet which could not cope with large amounts of insolvencies. So banks cannot “end forbearance”. Nor do we wish them to do so. Widespread losses across the entire UK banking sector would catapult the UK back into deep recession. I am no fan of damaged banks – indeed I have called for them to be bypassed so that the UK economy can get the credit it desperately needs. But that doesn’t mean that it would be sensible to bankrupt them all.

So it seems there is little evidence for the existence of zombie companies. But there is considerable evidence for the existence of zombie banks. Indeed the very term “zombie” was originally used about banks. During the American Savings & Loan Crisis of the 1980s & 90s,
UK_economy  banking  credit  SMEs  debt  creative_destruction  interest_rates  leverage  risk  bankruptcy 
december 2013 by dunnettreader
McCloskey, Deirdre (2009): Saving, Investment, Greed, and Original Accumulation Do Not Explain Growth - Munich Personal RePEc Archive
Thrift was not the cause of the Industrial Revolution or its astonishing follow on. For one thing, every human society must practice thrift, and pre-industrial Europe, with its low yield-seed ratios, did so on a big scale. British thrift during the Industrial Revolution, for another, was rather below the European average. And for still another, savings is elastically supplied, by credit expansion for example (as Schumpeter observed). Attributing growth to investment, therefore, resembles attributing Shakespeare’s plays to the Roman alphabet: “necessary” in a reduced sense, but in fact an assumed background, not the cause in any useful sense. Certainly Europeans did not develop unusual greed, and the Catholics---in a society of bourgeois dignity and liberty---did as well as the Protestants (in Amsterdam, for example). Ben Franklin, for example, was not (as D. H. Lawrence portrayed him in a humorless reading of this most humorous man) “dry and utilitarian.” If capitalism accumulates “endlessly,” as many say, one wonder why Franklin give up accumulating at age 42. The evidence also does not support Marx’s notion of an “original accumulation of capital.” Saving and investment must be used when they are made, or they depreciate. They cannot accumulate from an age of piracy to an age of industry. Yet modern growth theory, unhappily, reinstates as initiating the theory of stages and, especially, capital accumulation. They are not initiating, whether in physical or human capital. Innovation 1700-2010 pushed the marginal product of all capitals steadily out, and the physical and human capital followed. -- downloaded pdf to Note
paper  economic_history  economic_growth  economic_theory  economic_culture  Marxist  capital  investment  Industrial_Revolution  18thC  19thC  20thC  Innovation  technology  credit  downloaded  EF-add 
september 2013 by dunnettreader
Paul E. Lovejoy and David Richardson: 'This Horrid Hole': Royal Authority, Commerce and Credit at Bonny, 1690-1840 (2004)
JSTOR: The Journal of African History, Vol. 45, No. 3 (2004), pp. 363-392 -- downloaded pdf to Note -- This article suggests that differences in local political structures and credit protection regimes largely account for Bonny's displacement of Old Calabar as the principal slave port of the Bight of Biafra in the eighteenth century, despite Bonny's reputation for being particularly unhealthy for Europeans. We argue that this displacement occurred in the 1730s, several decades earlier than previously thought. We suggest that this was made possible by the early growth and consolidation of royal authority at Bonny. The use of state authority to enforce credit arrangements in Bonny proved more effective than the mechanisms adopted at its closest rival, Old Calabar, where, in the absence of a centralized political authority similar to the monarchy at Bonny, credit protection before 1807 was based on pawnship.
article  jstor  economic_history  economic_sociology  institutional_economics  17thC  18thC  19thC  Africa  Britain  British_Empire  slavery  trade  credit  finance_capital  Atlantic  downloaded  EF-add 
september 2013 by dunnettreader

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