In their new book, Fragile by Design, Columbia University professor Charles W. Calomiris and Stanford University professor Stephen H. Haber explore why banking systems are unstable in many countries—but not in
This article is adapted from the authors’ new book, Fragile by Design: The Political Origins of Banking Crises and Scarce Credit (Princeton University Press, 2014).
Progressives are understandably troubled about the high price that the poor pay for financial services, such as check cashing or payday loans. Last month, the Inspector General of the U.S. Post Office suggested that the Post Office might turn a tidy profit by supplying those services at lower cost.
The markets applauded Janet Yellen’s report to Congress earlier this week, with stocks, in particular, gaining back a good part of what they had lost since the beginning of 2014. This enthusiasm seems fully justified, as the new Federal Reserve Chair painted an
Allan H. Meltzer, Carnegie Mellon University and Hoover Institution
With $2.5 trillion sitting idle on bank balance sheets and more than $2 trillion additional sitting on corporate balance sheets, we should
The Securities and Exchange Commission’s (SEC) is about to require disclosure of the ratio of CEO pay to the median pay of all workers in the firm. There is little economic justification for this disclosure, which appears to be motivated by a desire to “shame”
Earlier today, Janet Yellen gave her first Congressional testimony as chair of the Federal Reserve Board of Governors. Chair Yellen offered no surprises and implied the Fed will mostly remain on its current course of action in the coming months. Her first impression was continuity, not surprise.
On Wednesday the Federal Reserve’s Federal Open Market Committee issued a release detailing its future course. The release stated that because of slight improvements in economic growth, employment, and spending, the members decided to taper their monthly bond purchases by another $10 billion, echoing December’s
Does Princeton University professor Paul Krugman have a bank account, check book, credit card, mortgage, or retirement account? In Monday's New York Times he characterizes those who achieve success in the financial sector as "wheeler- dealers, men who push
The Federal Reserve is building the tools it will need to exit from its extraordinary monetary policy. Just as the market was against the Fed tapering, it will worry periodically about rate hikes, but we think the Fed is gradually laying