Banking in the Abstract – The ‘Chicago Plan’

Introduction The IMF recently published a working paper (August 2012) “The Chicago Plan Revisited”: http://www.imf.org/external/pubs/ft/wp/2012/wp12202.pdf The authors are IMF staffers Jaromir Benes and Michael Kumhof. The views expressed are those of the authors, and not of the IMF. Accordingly, we will refer to this paper as the “BK Chicago Plan”. The original “Chicago Plan” isRead More

TARGET2 – Window on Eurozone Risk

* This paper can also be downloaded in PDF format here.   By JKH Introduction About a year ago, a blogosphere debate erupted over TARGET2, the inter-central bank payment system for the Eurozone. Ground zero for that discussion was a blog post by Hans-Werner Sinn, followed by a more comprehensive paper: http://www.voxeu.org/article/ecb-s-stealth-bailout http://www.cesifo-group.de/portal/pls/portal/docs/1/1210631.PDF Sinn’s argument wasRead More

Monetarism Unplugged

There’s a considerable backlog of interesting material related to the April, 2012 Krugman/Keen blogosphere debate on banking. Market monetarist Bill Woolsey wrote an intriguing piece on banks and monetary policy, somewhat under the radar to the main discussion. I don’t know if it was prodded by the K/K debate, but it may well have been:Read More