a column by Adam Brzezinski, Yao Chen, Nuno Palma and Felix Ward for VOX: CEPR’s Policy Portal
During the early 16th to 19th centuries, Spain received large amounts of monetary silver from its colonies in America. Vagaries of the sea thus affected Spain’s money supply.
This column investigates the effects of money supply shocks on the economy using the case of maritime disasters in the Spanish Empire. It finds that a one-percentage-point reduction in the money growth rate caused a 1.3% drop in real output that persisted for several years. Analysing monetary transmission channels, it shows that price rigidities and credit frictions account for most of this non-neutrality result.
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Showing posts with label money. Show all posts
Showing posts with label money. Show all posts
Wednesday, 20 November 2019
Tuesday, 22 October 2019
The cash hoarding puzzle
a column by Sayuri Shirai and Eric Alexander Sugandi for VOX: CEPR&rsquo's Policy Portal
Although cashless payments are becoming increasingly common, the demand for cash is rising in many advanced economies. One reason for this is cash hoarding.
The column uses data on cash issuance to examine the scale of, and motives for, cash hoarding. The two most important drivers are monetary easing and the preference of older people for cash.
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I found the graphs particularly informative.
On a personal note I wish I had cash to hoard!
Although cashless payments are becoming increasingly common, the demand for cash is rising in many advanced economies. One reason for this is cash hoarding.
The column uses data on cash issuance to examine the scale of, and motives for, cash hoarding. The two most important drivers are monetary easing and the preference of older people for cash.
Continue reading
I found the graphs particularly informative.
On a personal note I wish I had cash to hoard!
Saturday, 12 October 2019
Can we create an empathic alternative to the capitalist system?
a post by Murilo Johas Menezes for the Big Think blog
Is capitalism naturally unempathetic?
Any attempt to propose a detailed alternative to the capitalist economic system in a short article could be seen as somewhat presumptuous.
How different economic models are established and how they work around the globe in distinct realities and societies is enormously complex. But, whatever the difficulties in envisioning an alternative, there seems to be a growing consensus on the existing situation: the capitalist system is not working for everyone.
The current model
Capitalism has brought important contributions over the last decades. These include the flourishing of technologies used for renewable energies, aligned with the necessity of low-carbon economies; medical breakthroughs that have substantially increased life expectancy across the globe; along with wealth creation and the growth of emerging economies that has lifted hundreds of millions of people out of extreme poverty.
Yet, these developments have come at a high cost. Humanity is now facing, at an unprecedented scale, several social and environmental problems that are intrinsic to the very nature of the current capitalist model – its incentive structures and how private players prioritize maximizing profits over an approach that promotes social inclusion and environmental resilience.
Reprinted [by Big Think] with permission of the World Economic Forum. Read the original article.
Is capitalism naturally unempathetic?
People bathe at roadside municipal taps in Delhi, India … capitalism has created gross inequalities like a lack of proper sanitation for millions worldwide. Image: REUTERS/Ahmad Masood
Any attempt to propose a detailed alternative to the capitalist economic system in a short article could be seen as somewhat presumptuous.
How different economic models are established and how they work around the globe in distinct realities and societies is enormously complex. But, whatever the difficulties in envisioning an alternative, there seems to be a growing consensus on the existing situation: the capitalist system is not working for everyone.
The current model
Capitalism has brought important contributions over the last decades. These include the flourishing of technologies used for renewable energies, aligned with the necessity of low-carbon economies; medical breakthroughs that have substantially increased life expectancy across the globe; along with wealth creation and the growth of emerging economies that has lifted hundreds of millions of people out of extreme poverty.
Yet, these developments have come at a high cost. Humanity is now facing, at an unprecedented scale, several social and environmental problems that are intrinsic to the very nature of the current capitalist model – its incentive structures and how private players prioritize maximizing profits over an approach that promotes social inclusion and environmental resilience.
Reprinted [by Big Think] with permission of the World Economic Forum. Read the original article.
Thursday, 30 May 2019
Indebted life and money culture: payday lending in the United Kingdom
Paul Langley and Ben Anderson (Durham University, UK) and James Ash and Rachel Gordon (Newcastle University, UK) published in Economy and Society Volume 48 Issue 1 (2019)
Abstract
Critical social scientific research holds that credit–debt is a principal economic and governing relation in contemporary economy and society, but largely neglects money’s role in indebted life.
Drawing on qualitative research in the payday loan market in the United Kingdom, the paper shows that borrowers typically relate to loans in monetary rather than financial terms and incorporate them into practices of payment, spending and online banking.
To analyse how indebted life is variously experienced and enacted through money, the concept of money culture is developed to refer to money’s culture, money’s meanings and money’s affects. Borrowers enter into and negotiate payday loans through a digitally mediated money culture that both mobilizes and runs counter to money’s powerful fictions as circulating universal equivalent and calculative means of account.
Abstract
Critical social scientific research holds that credit–debt is a principal economic and governing relation in contemporary economy and society, but largely neglects money’s role in indebted life.
Drawing on qualitative research in the payday loan market in the United Kingdom, the paper shows that borrowers typically relate to loans in monetary rather than financial terms and incorporate them into practices of payment, spending and online banking.
To analyse how indebted life is variously experienced and enacted through money, the concept of money culture is developed to refer to money’s culture, money’s meanings and money’s affects. Borrowers enter into and negotiate payday loans through a digitally mediated money culture that both mobilizes and runs counter to money’s powerful fictions as circulating universal equivalent and calculative means of account.
Friday, 28 December 2018
Why insecure people buy more things
a post by Matthew Davis for the Big Think blog
Money may not buy you love, but it won't break your heart either.
Money may not buy you love, but it won't break your heart either.
- The link between a poor interpersonal life and materialism has been known for decades, but the exact reason for this connection hasn't been clear.
- New research shows that two problematic attachment styles can push people towards seeking the love and affection they crave in material wealth.
- The study shows both how broken-hearted people use materialism as a crutch and how this dependency can be reversed.
Saturday, 3 March 2018
Money and monetary stability in Europe, 1300-1914
a column by K. Kıvanç Karaman, Sevket Pamuk and Seçil Yıldırım-Karaman for VOX: CEPR’s Policy Portal
There is a notable lack of long-run analyses of monetary systems and their stability. This column addresses this gap by looking at the monetary systems of major European states between 1300 and 1914. The evidence collected suggests that, despite many switches between standards and systems, fiscal capacity and political regimes ultimately shaped patterns of monetary stability. Theories of monetary stability that rely on the mechanics of monetary systems perform poorly when such a long-run perspective is taken.
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Hazel’s comment
Even if you have little or no interest in money or monetary stability you will find some fascinating graphical illustrations of devaluation and inflation in this column. I spent far more time than I should have done actually reading.
If I did that for all my posts I would never get anything posted.
There is a notable lack of long-run analyses of monetary systems and their stability. This column addresses this gap by looking at the monetary systems of major European states between 1300 and 1914. The evidence collected suggests that, despite many switches between standards and systems, fiscal capacity and political regimes ultimately shaped patterns of monetary stability. Theories of monetary stability that rely on the mechanics of monetary systems perform poorly when such a long-run perspective is taken.
Continue reading
Hazel’s comment
Even if you have little or no interest in money or monetary stability you will find some fascinating graphical illustrations of devaluation and inflation in this column. I spent far more time than I should have done actually reading.
If I did that for all my posts I would never get anything posted.
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