“Great and mighty things which thou knowest not” [?]

In his recent paper, “A Lost Century in Economics:  Three Theories of banking and the conclusive evidence”, Richard Werner argues that the old “credit creation theory” of money is true (empirically “accurate”), while both the newer “fractional reserve theory” and the presently dominant “debt intermediation theory” are false.  For him, this matters mainly because the false theories are guiding current

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Getting clear on clearing

Gary Cohn, president and COO of Goldman Sachs, weighs in with his doubts about the wisdom of the current regulatory push to move as much as possible of security trading onto clearinghouse platforms.  (See article in FT here, and podcast here.)  Now Moody’s asks for industry feedback on clearinghouse risk, and CFTC Commissioner Bowen reiterates call for “public directors and

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