Dirk Bezemer (Groningen) and Michael Hudson (Missouri): Finance Is Not the Economy: Reviving the Conceptual Distinction. Every industry thinks it’s special, but only finance gets treated that way. The introduction to Money Changes Everything: How Finance Made Civilization Possible by William N. Goetzmann. Simon Johnson on the financial system of the future. From PUP, the first chapter from Competition and Stability in Banking: The Role of Regulation and Competition Policy by Xavier Vives. Victoria Finkle on the most important agency you’ve never heard of: The Office of Financial Research is meant to be the early-warning system for the next financial crisis — is it doing its job?
From The Atlantic, could reviving a defunct banking rule prevent a future crisis? Presidential candidates and politicians are touting Glass-Steagall regulation as a solution to the risks posed by big banks. Financial regulation has become a key issue in November’s presidential and congressional elections — so who has the more plausible and workable plan for reducing the risks associated with very large financial firms? Josh Bivens and Hunter Blair on how a financial transaction tax would help ensure Wall Street works for Main Street (and more). In finance, even business as usual comes at too high a price. The hustle continues: David Dayen on why the feds haven’t nailed the big banks.
Noah Smith on the dirty little secret of finance: Asymmetric information. Sebastian Mallaby on the dirty little secret of central banking. Jonathan Kirschner reviews The End of Alchemy: Money, Banking, and the Future of the Global Economy by Mervyn King. Jan Fichtner (Amsterdam): Perpetual Decline or Persistent Dominance? Uncovering Anglo-America’s True Structural Power in Global Finance. Kiss your domestic bias goodbye, central bankers of the world. The bankers’ bank: Does the Federal Reserve govern the banking system — or vice versa? The Federal Reserve is debating how to fight the next recession. Larry Summers on how the Fed is making the same mistakes over and over again, and on how the Fed shouldn’t expect people to trust its current approach to the economy.
Central bankers hear plea: Turn focus to government spending. Mad at the Fed? Get mad at Congress instead. Mark Thoma on why we need a fiscal policy commission.
