"Segregated Balance Accounts" is a nice new paper by Rodney Garratt, Antoine Martin, James McAndrews, and Ed Nosal. Currently, large depositors, especially companies, have a problem. If they put money in banks, deposit insurance is limited. So, they use money market funds, overnight repo, and other very short-term overnight debt instead to park cash. If you've got $10 million in cash, these are safer than banks. But they're prone to runs, which cause little financial hiccups like fall 2008.
Baltimore is now paying the price for irresponsible words and actions, not only by young thugs in the streets, but also by its mayor and the state prosecutor, both of whom threw the police to the wolves, in order to curry favor with local voters.
Ask the proverbial "man on the street" whether current government debt imposes a burden on future generations, and he will likely answer "yes." But ask the same question of sophisticated economists, especially Keynesian ones, and they will likely answer "no."
by Paul R. Gregoryvia What Paul Gregory Is Thinking About (Blog)
Tuesday, June 2, 2015
My colleague, Marianna Yarovskaya, sent me these images of a typical Moscow bookstore. Books on Stalin are everywhere. This is part of an official campaign to glorify Stalin's image as a strong and decisive leader who was up to all challenges.
Fifty-five distinguished scholars will publish an open letter Wednesday morning protesting the one-sided and politicized curriculum framework introduced last year by the College Board to prepare high school students for the Advanced Placement Exam in U.S. history. The scholars assert that the College Board’s framework exposes the teaching of American history to “a grave new risk.” It does this and worse.
There may still be a few Lawfare readers who are not so disgusted with their legislature—and their legislators—that they are still following the Senate’s ongoing machinations over the USA Freedom Act. For those who can still contemplate the subject without nausea, here’s the state of play in a nutshell.
Perhaps you have missed it amid all the heated rhetoric about gay marriage, but seemingly serious people have proposed that henceforth Almighty God—or at least God’s people and churches—must keep up with modern times.
The Hoover Institution Press released Puzzles, Paradoxes, Controversies, and the Global Economy, a wide-ranging collection of essays by author Charles Wolf Jr., senior research fellow at the Hoover Institution and distinguished chair in international economics at the RAND Corporation.
Nominal wages (as measured by the employment-cost index) in 2015 have finally showed some substantive increases for the first time since the Great Recession.
The Federal Reserve’s first step to exit its ultra-easy policy stance should be to sell some of the Treasurys and mortgage securities on its balance sheet rather than raising interest rates, a former U.S. central banker said Monday.
Dennis Hastert, a former speaker of the House, has been indicted by a federal grand jury for allegedly structuring bank withdrawals of large sums of cash to evade federal law.
Striking a blow not only for religious liberty, but also for diverse standards of beauty, the U.S. Supreme Court decided Monday that Abercrombie & Fitch could not deny employment to a young woman because she wears a headscarf for religious reasons.
The state is proposing to use federal Medicaid dollars to usher ill homeless people into housing, arguing the move will save taxpayers money. Critics see mission creep.
Moscow this year is celebrating the 80th anniversary of its subway system — the Moscow Metro — a crowning achievement of the Soviet Union's unprecedented forced industrialization in the 1930s.
Ben S. Bernanke, the former Federal Reserve chairman, has given short shrift to those who doubt the economic impact of his bond-buying campaigns in helping to bring the American economy out of the Great Recession.
