Ricardo V Lago Comments On Alex Cuikermans The Anguish Of Central Banking Another Look At The Us Great Inflation And Its Aftermathe
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Commnets by Ricardo V. Lago on th papper :"THE ANGUISH OF CENTRAL BANKING: ANOTHER LOOK AT THE GREAT US INFLATION AND ITS AFTERMATH " by Alex Cukierman The Fifthteen Dubrovnik Economic Conference organised by the National Bank of Croatia
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bookstores, think tanks are cranking out white papers, and four different congressional
committees, along with the official Financial Crisis Inquiry Commission, are investigating what
went wrong. Well they might, as the most basic question about the meltdown remains unsettled:
The only near consensus is on the question of what triggered the not-quite-a-depression. In 2007,
the housing bubble burst, leading to a high rate of defaults on subprime mortgages. Exposure to
bad mortgages doomed Bear Stearns in March 2008, then led to a banking crisis that fall. A
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from default in September 2008. Lehman\'s was the biggest bankruptcy in history, and it led
promptly to a powerful economic contraction. Somewhere around here, agreement ends.
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plausible necessary conditions—factors without which the crisis would not have occurred. Most
analysts find former Fed Chairman Alan Greenspan at fault, though for a variety of reasons.
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interest rates too low between 2003 and 2005 as the real estate and credit bubbles inflated. This
is the view, for instance, of Stanford economist and former Reagan adviser John Taylor, who
argues that the Fed\'s easy money policies spurred a frenzy of irresponsible borrowing on the part
of banks and consumers alike.
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into lethal phenomena. The pithiest explanation I\'ve seen comes fromNew York Times
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more exotic derivatives—credit-default swaps (CDSs), collateralized debt obligations (CDOs),
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A bit farther down on the list are various contributing factors, which didn\'t fundamentally cause
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The Great Depression was one of the worst periods in American History, with millions of Americans becoming prominently poor. It began in 1930, and lasted for about 15 years, making it the longest depression of recent memories. The entire world saw a significant decrease in their economy, and it originated in the United States. This took place once the stock prices fell, which ultimately resulted in the stock market crash of October 29, 1929. This day became known as Black Tuesday for its devastating effects that affected the poor and the rich alike. With the stock market crash, personal income declined significantly, the government was collected significantly less money in taxes, and unemployment rates increased to as high as one third of the population. There are a number of main causes for this incident, and various reasons for why it lasted so long.
One of the causes of the Great Depression is the decline in construction and agriculture. Prior to the stock market crash, there appeared to be a boom in construction that took place in 1918. This large construction boom had been helping the economy significantly, and it would ultimately lead to its downfall. After rising throughout the years, the construction boom would decline in 1928 (Walton 420). Additionally, the agriculture sector had a similar effect. In the 1920’s agriculture was booming, and generating lots of revenue for the economy. It would face a significant decline that would have an impact on the economy.
The Smoot-Hawley Tariff is one of the major causes of the Great Depression as well that drove the economy downward. “The tariff was passed in June 1930. It raised tariffs on a wide array of goods, especially agricultural products” (Walton 426). Thousands protested against the tariff, and many prominent leaders even signed a petition that they gave to President Hoover. The issue with the tariffs is that the high tariffs would reduce imports. This made it more difficult for other countries to profit from U.S. exports, and many believed that other nations would react by doing the same. They were ultimately right, and the other countries did increase their tariffs as a form of retaliation. This would impact trade significantly, causing trades between countries to decline. This feat decreased profits for markets all over the world, and would become one of the major causes of the Great Depression.
The stock market crash was the most prominent cause of the Great Depression, and its effects were more devastating than any other. There was a significant increase for industrial stocks, which is why so many had been entrusted in placing their life savings in there. The shares were 110 in 1924, 338 in January of 1929, and 452 in September of 1929 (Walton 421). This significant rise had led many to believe that they would inevitably attain a return on their investment, which is what caused so many Americans to invest their life savings. Technology was booming in the ...
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4/29 - 4/30 Chapter 12.2 Notes
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The document summarizes 15 books related to the 2008 financial crisis and its causes. It provides a brief description of each book, including explanations of the financial meltdown, perspectives on the global imbalances and deregulation that contributed to the crisis, analyses of the housing and mortgage markets, and recommendations for reforms to avoid future crises. The books cover topics such as the risky lending and investment practices that led to the crash, the role of greed and corruption on Wall Street, and the impact of the crisis on taxpayers.
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- Moving forward, economists will need to develop more realistic models that acknowledge irrational behavior, imperfect markets, and the possibility of unpredictable crashes occurring despite a central bank's efforts to prevent them. Theories will also need to incorporate more "messiness" rather than aiming for a single elegant theory.
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The document provides a history of central banking in the United States from the Revolutionary War to the present day. It details the establishment of the First and Second Banks of the United States in the late 18th/early 19th centuries, followed by periods of unstable "free banking" and the creation of the Federal Reserve System in 1913 to provide a more uniform currency and stabilize the banking system. Over the past century, the Federal Reserve's powers and responsibilities have expanded greatly, for better and worse, unintentionally contributing to economic booms and busts along the way.
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As the financial crisis of 2008-09 draws to a close, narratives of the meltdown are flooding
bookstores, think tanks are cranking out white papers, and four different congressional
committees, along with the official Financial Crisis Inquiry Commission, are investigating what
went wrong. Well they might, as the most basic question about the meltdown remains unsettled:
The only near consensus is on the question of what triggered the not-quite-a-depression. In 2007,
the housing bubble burst, leading to a high rate of defaults on subprime mortgages. Exposure to
bad mortgages doomed Bear Stearns in March 2008, then led to a banking crisis that fall. A
global recession became inevitable once the government decided not to rescue Lehman Bros.
from default in September 2008. Lehman\'s was the biggest bankruptcy in history, and it led
promptly to a powerful economic contraction. Somewhere around here, agreement ends.
There are no strong candidates for what logicians call a sufficient condition—a single factor that
would have caused the crisis in the absence of any others. There are, however, a number of
plausible necessary conditions—factors without which the crisis would not have occurred. Most
analysts find former Fed Chairman Alan Greenspan at fault, though for a variety of reasons.
Conservative economists—ever worried about inflation—tend to fault Greenspan for keeping
interest rates too low between 2003 and 2005 as the real estate and credit bubbles inflated. This
is the view, for instance, of Stanford economist and former Reagan adviser John Taylor, who
argues that the Fed\'s easy money policies spurred a frenzy of irresponsible borrowing on the part
of banks and consumers alike.
Liberal analysts, by contrast, are more likely to focus on the way Greenspan\'s aversion to
regulation transformed pell-mell innovation in financial products and excessive bank leverage
into lethal phenomena. The pithiest explanation I\'ve seen comes fromNew York Times
columnist and Nobel Laureate Paul Krugman, who noted in one interview: \"Regulation didn\'t
keep up with the system.\" In this view, the emergence of an unsupervised market in more and
more exotic derivatives—credit-default swaps (CDSs), collateralized debt obligations (CDOs),
CDSs on CDOs (the esoteric instruments that wrecked AIG)—allowed heedless financial
institutions to put the whole financial system at risk. \"Financial innovation + inadequate
regulation = recipe for disaster is also the favored explanation of Greenspan\'s successor, Ben
Bernanke, who downplays low interest rates as a cause (perhaps because he supported them at
the time) and attributes the crisis to regulatory failure.
A bit farther down on the list are various contributing factors, which didn\'t fundamentally cause
the crisis but either enabled it or made it worse than it otherwise might have been. These include:
global savings imbalances, which put upward pressure on U.S. a.
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1. The document evaluates three predominant economic views - Keynesianism, soft money Republican conservatism, and Austrian libertarianism - and how they have fared. It describes the key tenets of each view and prominent adherents.
2. Keynesians favor fiscal and monetary stimulus to boost aggregate demand and output. Soft money Republicans champion tax cuts and deregulation but have been inconsistent on deficits. Austrian libertarians favor free markets and sound money like the gold standard, and oppose deficit spending.
3. The document argues soft money Republicans verbally attack deficits and easy money but often fail to follow through with actions. It also critiques Milton Friedman for departing from the gold standard and becoming too statist
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Great depression 1929
The Great Depression was a severe worldwide economic depression that began in the United States in 1929 and lasted until the late 1930s into early 1940s. It originated from the collapse of stock prices and was exacerbated by monetary contraction and protectionist trade policies. Global GDP fell by around 15% between 1929-1932. Unemployment rose dramatically in many nations, including reaching 25% in the US. The Depression had devastating social and economic effects globally and led to political instability in several countries. Most countries began recovering around 1933, though the world did not fully recover until massive government spending during World War II.
The Other Road to Serfdom: Answering How Unrgulated Capital Caused the Crash ...
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I have the permission of David M Pidcock to share this book here. Any interested in reforming finance system should be reading this. David M Pidcock advised Mahatir Mohammad for not listening to World Bank.The Great DepressionThe Great Depression was one of the wors.docx
The Great Depression
The Great Depression was one of the worst periods in American History, with millions of Americans becoming prominently poor. It began in 1930, and lasted for about 15 years, making it the longest depression of recent memories. The entire world saw a significant decrease in their economy, and it originated in the United States. This took place once the stock prices fell, which ultimately resulted in the stock market crash of October 29, 1929. This day became known as Black Tuesday for its devastating effects that affected the poor and the rich alike. With the stock market crash, personal income declined significantly, the government was collected significantly less money in taxes, and unemployment rates increased to as high as one third of the population. There are a number of main causes for this incident, and various reasons for why it lasted so long.
One of the causes of the Great Depression is the decline in construction and agriculture. Prior to the stock market crash, there appeared to be a boom in construction that took place in 1918. This large construction boom had been helping the economy significantly, and it would ultimately lead to its downfall. After rising throughout the years, the construction boom would decline in 1928 (Walton 420). Additionally, the agriculture sector had a similar effect. In the 1920’s agriculture was booming, and generating lots of revenue for the economy. It would face a significant decline that would have an impact on the economy.
The Smoot-Hawley Tariff is one of the major causes of the Great Depression as well that drove the economy downward. “The tariff was passed in June 1930. It raised tariffs on a wide array of goods, especially agricultural products” (Walton 426). Thousands protested against the tariff, and many prominent leaders even signed a petition that they gave to President Hoover. The issue with the tariffs is that the high tariffs would reduce imports. This made it more difficult for other countries to profit from U.S. exports, and many believed that other nations would react by doing the same. They were ultimately right, and the other countries did increase their tariffs as a form of retaliation. This would impact trade significantly, causing trades between countries to decline. This feat decreased profits for markets all over the world, and would become one of the major causes of the Great Depression.
The stock market crash was the most prominent cause of the Great Depression, and its effects were more devastating than any other. There was a significant increase for industrial stocks, which is why so many had been entrusted in placing their life savings in there. The shares were 110 in 1924, 338 in January of 1929, and 452 in September of 1929 (Walton 421). This significant rise had led many to believe that they would inevitably attain a return on their investment, which is what caused so many Americans to invest their life savings. Technology was booming in the ...
Great Depression and the Wall Street Crash
The document examines whether the Great Depression was an inevitable consequence of the Wall Street Crash of 1929. It analyzes arguments that the Depression was caused by monetary policies of the Federal Reserve in the late 1920s that contracted the money supply, as well as the continuation of the gold standard. However, it also discusses critiques of these monetary arguments and argues that while monetary factors contributed, the Depression also stemmed from pre-existing poor conditions in the global and American economies. It concludes that the crash was not the sole trigger but rather interacted with other economic issues, policies, and psychology to produce the prolonged Depression of the 1930s.
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The document summarizes 15 books related to the 2008 financial crisis and its causes. It provides a brief description of each book, including explanations of the financial meltdown, perspectives on the global imbalances and deregulation that contributed to the crisis, analyses of the housing and mortgage markets, and recommendations for reforms to avoid future crises. The books cover topics such as the risky lending and investment practices that led to the crash, the role of greed and corruption on Wall Street, and the impact of the crisis on taxpayers.
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The Great DepressionThe Great Depression was one of the wors.docx
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一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
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留信网认证的作用:
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2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
办理(cwu毕业证书)美国中央华盛顿大学毕业证【微信：741003700 】外观非常简单，由纸质材料制成，上面印有校徽、校名、毕业生姓名、专业等信息。
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校名:学校英文全称
授予学位：本部分将注明获得的具体学位名称。
毕业生姓名：这是最重要的信息之一，标志着该证书是由特定人员获得的。
颁发日期：这是毕业正式生效的时间，也代表着毕业生学业的结束。
其他信息：根据不同的专业和学位，可能会有一些特定的信息或章节。
办理(cwu毕业证书)美国中央华盛顿大学毕业证【微信：741003700 】价值很高，需要妥善保管。一般来说，应放置在安全、干燥、防潮的地方，避免长时间暴露在阳光下。如需使用，最好使用复印件而不是原件，以免丢失。
综上所述，办理(cwu毕业证书)美国中央华盛顿大学毕业证【微信：741003700 】是证明身份和学历的高价值文件。外观简单庄重，格式统一，包括重要的个人信息和发布日期。对持有人来说，妥善保管是非常重要的。
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一、工作未确定，回国需先给父母、亲戚朋友看下文凭的情况，办理一份就读学校的毕业证【微信bwp0011】文凭即可
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三、进国企，银行，事业单位，考公务员等等，这些单位是必需要提供真实教育部认证的，办理教育部认证所需资料众多且烦琐，所有材料您都必须提供原件，我们凭借丰富的经验，快捷的绿色通道帮您快速整合材料，让您少走弯路。
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1:该专业认证可证明留学生真实身份
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3:国家专业人才认证中心颁发入库证书
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5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
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【业务选择办理准则】
一、工作未确定，回国需先给父母、亲戚朋友看下文凭的情况，办理一份就读学校的毕业证【微信bwp0011】文凭即可
二、回国进私企、外企、自己做生意的情况，这些单位是不查询毕业证真伪的，而且国内没有渠道去查询国外文凭的真假，也不需要提供真实教育部认证。鉴于此，办理一份毕业证【微信bwp0011】即可
三、进国企，银行，事业单位，考公务员等等，这些单位是必需要提供真实教育部认证的，办理教育部认证所需资料众多且烦琐，所有材料您都必须提供原件，我们凭借丰富的经验，快捷的绿色通道帮您快速整合材料，让您少走弯路。
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
【关于价格问题（保证一手价格）】
我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
对于老客户或者被老客户介绍过来的朋友，我们都会适当给一些优惠。
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- 1. THE ANGUISH OF CENTRAL BANKING:ANOTHER LOOK AT THE GREAT US INFLATION AND ITS AFTERMATHby Alex Cukierman Comments by Ricardo V. Lago
- 2. THE ANGUISH OF CENTRAL BANKING:ANOTHER LOOK AT THE GREAT US INFLATION AND ITS AFTERMATHby Alex Cukierman http://www.hnb.hr/dub-konf/15-konferencija/paper-cukierman.pdf
- 5. Arthur F. Burns (1970 -1978 / Nixon , Ford , Carter ) “RECESSION AVOIDANCE PREFERENCE”
- 6. Burns’ most famous quote “the Federal Reserve should not be expected to cope with inflation single-handedly. The only effective answer, in his opinion, lay in some form of incomes policy”
- 7. G. William Miller (1978 -1979 / Carter ) “RECESSION AVOIDANCE PREFERENCE”
- 9. William McChesney Martin(1951 -1970 / Truman ,Eisenhower , Kennedy , Johnson , Nixon ) “INFLATION AVERSION PREFERENCE”
- 10. William Martin : “The Thomas Becket Syndrome “
- 11. Martin’s most famous quote The job of the Federal Reserve is "to take away the punch bowl just as the party gets going,“
- 12. Paul Volcker (1979 -1987 / Carter , Reagan ) “INFLATION AVERSION PREFERENCE”
- 13. Alan Greenspan(1987-2006 / Reagan , Bush I , Clinton , Bush II ) “RECESSION AVOIDANCE PREFERENCE”
- 14. During the 1950s, Greenspan was one of the members of Ayn Rand's inner circle, who read Atlas Shrugged while it was being written
- 15. Greenspan’s split personality On the one hand , he pursued ultra –activist monetary policy . He was the ultimate interventionist On the other , he confused the real world with Ayn Rand’s “Atlas Shrugged” word . “Rational Self-interest” is the best form of natural and spontaneous regulation
- 16. Greenspan neglected important contributions to Economics Separation between ownership and control Principal /Agent Problem Asymmetric Information --------------------------------------------------- Outcome : The “managers” did indeed pursued “rational self interest” at the expense of the shareholders , creditors , and taxpayers Admission : Recently , Greenspan has yielded that he was wrong : the real world is not quite as simple as Ayn Rand’s “Atlas Shrugged”
- 18. This is a very controversial claim : to say the least “Greenspan’s contribution was that he did not spoil the hard earned stability under Volcker and utilised it to devote more of the policy effort to stabilization of the real economic activity without endangering price stability” ( page 23 , 1st paragraph)
- 19. Conclusion that I would have expected Four different versions of Casablanca corresponding to four different Humphrey Bogarts : Burns Bogart Volcker Bogart Greenspan Bogart Martin Bogart
- 21. Rather the policy rules of both Volcker or Greespan arose as endogenous reactions to the main problem monetary policy had to tackle when they were appointed .Volcker was appointed when inflation came to be considered the number one economic problem . So he developed a conservative rule .Greenspan came into office when inflation has been stabilized under Volcker .Therefore , he could deploy more efforts to the unemployment objective in the Fed dual mandate
- 23. Who is next …..
- 24. Does it really matter ? If we take Cukierman’s conclusion at face value : there is only one Casablanca Isn’t Money far too important to leave it to the discretion of central bankers all of which will be victims of the circunstances Why not go back to a Bretton Woods II System : with Dollar-Gold and /or Euro-Gold Standard Wouldn’t it be better that central bankers focus exclusively on monitoring and ensuring the solvency of the financial system and stay away from the money supply