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Current Scholarship
Bad Money

Author: Dan Awrey

Money is, always and everywhere, a legal phenomenon. In the United States, the vast majority of the money supply consists of monetary liabilities

Current Scholarship
Money Creation in Fiat and Digital Currency Systems

Authors: Marco Gross and Christoph Siebenbrunner

To support the understanding that banks’ debt issuance means money creation, while centralized nonbank financial institutions’ and decentralized bond market intermediary lending does not, the paper aims to convey two related points

Banking: Intermediation or Money Creation
R. Hockett & S. Omarova, What Do Banks Intermediate?

February 5, 2020

Robert Hockett, Cornell Law School
Saule Omarova, Cornell Law School

Apparently there still are people who believe that the principal role of commercial banks is to ‘intermediate’ between depositors and borrowers – lending the funds of the former to the latter at a premium, conveying a portion of that premium to the former, and pocketing the remainder.

About Just Money

On this website, we approach money as a legal project.  Created to meet demands both public and private, money depends on law for its definition, issue, and operation.    That legal structure of money – its design – matters deeply.  In the words attributed to an early  banker, “those who create and issue money . . . direct the policies of government and hold in the hollow of their hands the destiny of the people.”   Our aim is to encourage discussion, debate, and scholarship on money’s design and its reform towards a world that is as just as it is (economically) productive. (See more)

Current Scholarship
Bagehot’s Giant Bubble Failure

Author: Andrew Odlyzko

Walter Bagehot is remembered today primarily as a proponent of the doctrine of lender of last resort, in which central banks pump money into the economy to ameliorate the damage from a financial crisis.

Current Scholarship
Banks are not intermediaries of loanable funds – facts, theory and evidence

Authors: Zoltan Jakab and Michael Kumhof

In the loanable funds model, banks are modelled as resource-trading intermediaries that receive deposits of physical resources from savers before lending them to borrowers. In the financing model, banks are modelled as financial intermediaries whose loans are funded by ex-nihilo creation of ledger-entry deposits that facilitate payments among nonbanks. The financing model predicts larger and faster changes in bank lending and greater real effects of financial shocks.

Current Scholarship
State Building for a Free Market: The Great Depression and the Rise of Monetary Orthodoxy

Author: David M. P. Freund

The U.S. government transformed American finance between 1913 and 1935 by assuming extraordinary new powers over the banking sector and the money supply. And the government’s actions were reliably controversial. Beginning soon after the Federal Reserve began operations and lasting through the reforms that restructured the institution during the New Deal, critics warned that federal overreach in financial markets posed an existential threat to the free-enterprise system.

Call or Papers
Call for Papers: Monetary Policy in Historical Perspective (16th-19th Centuries)

16 October 2020 – Keynote speakers: Francois Velde (Federal Reserve Bank of Chicago)

Organisers: Dr Stefano Locatelli (History, UoM), Dr Nuno Palma (Economics, UoM)

Submission closes: 31st January 2020 Acceptance notification: 28th February 2020

Abstracts submission: stefano.locatelli@manchester.ac.uknuno.palma@manchester.ac.uk

Registration is free; there will be a limited number of accommodation and travel grants available. Priority will be given to speakers without a faculty position (PhDs and Postdocs). Please, indicate in your email if you need financial support.

To submit papers please email the organisers – include your title and an abstract. There is no need to submit a full paper at this stage, although priority may be given those sending a full text. This workshop will bring together researches interested in exploring different policies and strategies adopted by various actors such as rulers, governments and ordinary people in time of monetary ‘crisis’, as well as normal times, between the 16th and 19th centuries. To what extent did political changes of a territory affects its economy and monetary system and vice versa, and what effects did those ‘local’ changes have on the macro level, i.e. on the process of integration of economic and monetary markets? These are key questions of the proposed event, which also aims at providing a comprehensive discussion of monetary and financial ‘crisis’, taking into account different phenomena such as the provision of precious metals, minting policies, money supply, monetary fluctuations, and financial market integration.

This one-day workshop will be organised on 16th October 2020 and will host Francois Velde (Federal Reserve Bank of Chicago) with a contribution on the Neapolitan banks in the context of early modern public banks.… more