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New year, new reading

Posted By Kurt Schuler On January 2, 2014 @ 10:11 pm In Uncategorized | 1 Comment

Free banking in Peru [1]

Free banking in the United States (see here [2], go to bottom of page and click "load all," and search for "free banking")

The Fed versus the classical economists on the lender of last resort (ditto; search for "Thomas Humphrey")

The last two are from the upcoming American Economic Association meetings this weekend, which also features the most turgid title I have ever seen in an economics paper: "The Commodified Womb, Neoliberalism and the White Heteronormative Family."

ADDENDUM: Vern McKinley [3] in Forbes on too big to fail. (Come on, contributors: when you write something relevant, mention it yourselves rather than letting me discover it and mention it belatedly for you.)

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1 Comment To "New year, new reading"

#1 Comment By Gonzalo R. Moya V. On January 3, 2014 @ 3:24 pm

Although it is true that there was some banking regulation by the government since 1873, it was not formally institutionalized until 1931, after the assessment from professor Edwin Walter Kemmerer and his consulting group, "the Kemmerer Mission". The Peruvian Central Bank of Reserve (BCRP) was founded in April that year and the Superintendence of Banks and Insurance Companies (SBS) a month later.
As I have explained before, the Federal Reserve has mainly three functions: (1) controller of the monetary base, (2) lender of last resort and (3) banking supervisor. Out of those three, many countries have the third function delegated to an independent institution, such as Peru with the SBS, where I work at. Doing so is not just to increase bureaucracy, but for all the ramifications that spring from separating the banking problems of liquidity and solvency.

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URL to article: http://www.freebanking.org/2014/01/02/new-year-new-reading/

URLs in this post:

[1] Peru : http://mises.org/journals/qjae/pdf/qjae16_2_4.pdf

[2] here: http://www.aeaweb.org/aea/2014conference/program/preliminary.php

[3] Vern McKinley: http://www.forbes.com/sites/realspin/2013/12/19/president-obama-faces-a-bigger-ticking-time-bomb-than-obamacare-itself/

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