Was coin debasement always bad?

Was coin debasement always bad?

| coins, Gresham's Law, inflation, seigniorage, sticky prices, unit of account

Dante's 8th level of hell, which housed counterfeiters, among others. Illustration by Doré In this post I'll argue that debasement w...

Fama vs Shiller on the 1987 stock market crash

Fama vs Shiller on the 1987 stock market crash

| efficient markets hypothesis, Eugene Fama, fundamental value, Robert Shiller, stock market and equities, technical and fundamental analysis

Tomorrow marks the twenty-sixth anniversary of the 1987 stock market crash. On October 19, 1987 the Dow Jones Industrial Average fell 22.6%,...

Medieval QE

Medieval QE

| agio, coins, convenience yield, liquidity premium, moneyness, quantitative easing, seigniorage

Hand operated rolling mill, for putting the edge impression on to coins I've been reading about the medieval monetary system lately. Wha...

Toying with the monetary transmission mechanism

Toying with the monetary transmission mechanism

| bitcoin, clearing and settlement, open market operations

Does it matter what the Fed buys? ...from whom? ...or how? I don't think so. The Fed currently buys and sells government-issued and guar...

What happens when stock markets die?

What happens when stock markets die?

| bitcoin, liquidity premium, stock market and equities

What effect does a stock market listing have on the value of equity? Companies can always choose to issue shares privately rather than list ...

Could Bitcoin kill Fed monetary policy?

Could Bitcoin kill Fed monetary policy?

| bitcoin, cash, Federal Reserve, medium of exchange, Michael Woodford, unit of account

While bitcoin could one day kill most of the roles that the Fed plays, monetary policy will probably stay intact. The reason for this, as I...

Ghost Money: Chile's Unidad de Fomento

Ghost Money: Chile's Unidad de Fomento

| compensated dollar, deflation, ghost money, inflation, Irving Fisher, medium of exchange, money illusion, Robert Shiller, unit of account, zero lower bound

Santiago skyline This post continues on the topic of the separation of the medium-of-exchange function of money from the unit-of-account fu...