Monthly Archives: March 2013

The Shocking Truth About Inequality

(Originally published here.) Economists have identified two basic reasons why income inequality has increased so much since the early 1970s. On the one hand, globalization and technological progresshave made certain skills much more valuable and others much less valuable. This has … Continue reading

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Will We Miss the Banks When They’re Dead?

(Originally published here.) In a previous post, I argued that banks are inherently unstable. Then I presented some ways to make them — and the rest of us — safer. Some people think that this is the wrong objective. Risk and financial panics … Continue reading

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The Best Way to Save Banking Is to Kill It

(Originally published here.) In a previous post, I explained that banks are inherently fragile. One way to make them more robust is to increase equity capital requirements. This is the remedy advocated by Bloomberg View’s editors. The banks call it radical but … Continue reading

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Don’t Make DeMarco a Scapegoat for the Housing Mess

(Originally published here.) Nine state attorneys general have just asked President Obama to fire Edward DeMarco, acting head of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac. They say: “FHFA’s refusal to adjust its policies to allow … Continue reading

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Why We Should Rip the Banks in Two

(Originally appeared here.) What banks do — sell short-term debt (like deposits) to fund long-term loans — is inherently risky. In theory, shareholders bear this risk. In practice, much of it is dumped on citizens, even though they’ve no claim … Continue reading

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Paul Ryan Isn’t an Inflation Nutter

(Originally posted here.) My colleagues Betsey Stevenson and Justin Wolfers provocatively argue that Representative Paul Ryan, the Republican Party’s de facto spokesman on economic policy, is “an inflation nutter” because he is concerned that future budget deficits may lead to … Continue reading

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Germany’s New Euro-Haters Threaten Draghi’s Dream

(Originally posted here.) Last summer, Mario Draghi, the president of the European Central Bank, declared that he would do “whatever it takes” to preserve the euro. We may soon find out just how much his word is worth. On the … Continue reading

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