Over at the FT, Gavyn Davies writes concerning the Eurozone, Member states cannot print the euro, which automatically increases the risk that they will default on their debt. (Admittedly, it also reduces the risk that they will inflate their debt away. The markets are not too worried about this in these deflationary times, though one [...]

Tags: Davies, EU, Euro, finance, sovereign debt crisis, Taleb
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Everyone is interested in monetary policy and the Fed all of a sudden, so, what the hell, I’ll chime in too. Here is my ranking of monetary regimes: Depoliticization and denationalization of money. Free banking. The market selects a currency and banking is “regulated” in court under the common law of contract. The Fed is [...]

Tags: Cowen, Euro, Federal Reserve, Free Competition in Currency Act, monetary policy, optimal currency area, Paul, quantitative easing, Sumner, Tabarrok, Watts
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Officials from EU governments have just now pledged to bail out the Greek government. In my view, this is a bad idea, at least for the people of Germany and France, who will bear a lot of the cost. Since I am having some trouble organizing my thoughts into fluent paragraphs, I will present them [...]

Tags: bailout, Carville, EU, Euro, fiscal commons, Greece, optimal currency area, sovereign debt crisis, Wagner
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