Daily Archives: 15 November 2012

Cato Institute 30th Annual Monetary Conference, Part 7

Charles I. Plosser President, Federal Reserve Bank of Philadelphia Plosser’s speech: “Good Intentions in the Short Term with Risky Consequences for the Long Term.” Since Plosser is reading his speech almost verbatim, for me to take notes would be superfluous.  I have to run to get my car, so I won’t be here for the […]

Cato Institute 30th Annual Monetary Conference, Part 6

Moderator: Tao Zhang U.S. Bureau Chief, Caixin Media Capital Freedom for China   Eswar S. Prasad Tolani Senior Professor of Trade Policy, Cornell University Renminbi as a reserve currency 3 conditions: Internationalization Capital Account Convertibility Do other countries hold Renminbi assets as protection against payments crises. (DM: also, do you want to have a lot […]

Cato Institute 30th Annual Monetary Conference, Part 5

Moderator: Mary Anastasia O’Grady Member, Editorial Board, Wall Street Journal Lessons from the Euro Crisis Opens by saying that the Euro was started with good intentions.  (DM: low praise that it was not designed to fail.) George S. Tavlas Director, Bank of Greece Euro was anticipated to reduce economic problems in Greece, and it worked […]

Cato Institute 30th Annual Monetary Conference, Part 4

John B. Taylor Professor of Economics, Stanford University Money, Markets & Governments: The Next 30 Years Last 30 years — 1982-2002 good monetary policy, in his opinion. 2002-2012 bad monetary policy. Economic performance deteriorated during the great moderation. Inflation rate came down dramatically. Argues that Fed funds were too low for too long 2003-2004, and […]

Cato Institute 30th Annual Monetary Conference, Part 3

Moderator: William Poole Senior Fellow, Cato Institute The Fed has practically given up its independence.  It is independent with the confines in the government. QE2 was a mistake — there were already excess reserves at the banks. Current economic problems are not monetary in nature.  ECB has violated or circumvented many strictures in its charter. […]

Cato Institute 30th Annual Monetary Conference, Part 2

Moderator: Zanny Minton Beddoes Economics Editor, The Economist Thomas Hoenig Vice Chairman, Federal Deposit Insurance Corporation Tells us to be skeptical of changes in financial regulation.  Incentives have not changed to favor increased leverage in financial institutions.  Protecting big banks has further worsened incentives. Safety net started w/FDIC — insuring bank deposits makes payments system […]

Cato Institute 30th Annual Monetary Conference, Part 1

Note to readers: these are my notes from the conference, as such, they will be rough. Keynote: Vernon L. Smith, Professor of Economics, Chapman University, and Nobel Laureate in Economics Main points: 1) we get bubbles because we misfinance long-term assets, typically housing.  We borrow short to finance a long-term asset.  Examples: Great Depression and […]