Commentaries (some of them cheeky or provocative) on economic topics by Ralph Musgrave. This site is dedicated to Abba Lerner. I disagree with several claims made by Lerner, and made by his intellectual descendants, that is advocates of Modern Monetary Theory (MMT). But I regard MMT on balance as being a breath of fresh air for economics.
Who pays for deposit insurance? It would not be quite so nonsensical if banks and their depositors ACTUALLY PAID for DI. They have in fact been doing so in the US since the early 1930s, for some time, while in the UK various “bankers' poodle politicians” have only recently had to admit that banks and depositors ought to pay. But even where depositors DO PAY, they only pay for the risk to the DI system of losing out as a result of some bank making a “silly loan” c*ck up.I.e. it is still possible for deposito
Omarova is Biden's choice for “Comptroller of the Currency”, which more or less equals chief bank regulator in plain English far as I can see. She is relatively pro strict bank regulation, while Selgin has pro free market views on banks which make the GOP look almost socialist. A clash of views is almost inevitable. The paragraphs below deal with Selgin's criticisms. Selgin's main mistake, which actually renders most of his other criticisms irrelevant starts in his second paragraph. He says, “According to y