Nicolás Cachanosky
Saving, Hoarding and Fractional Reserve Banking
Fractional reserves is an important component of financial stability. Most of the financial regulation is aimed to control this aspect of banking practice such that banks do not become insolvent […]
Germany and the Financial Crisis
Lately, a lot has been said about Greece, Spain and Italy in the financial crisis affecting Europe. The fear is that these economies can affect the performance of bigger economies, […]
Budget Reform in Italy
Italy’s senate approved today a plan to cut government spending for the period 2011-2014. Italy’s public debt is more than 100% of GDP and the fiscal deficit was between 3% […]
Sovereign Debt Pressure
The European countries seem to be facing a road with no easy exit. One on side they are facing fiscal deficits. On other side they are already dealing with an […]
What is Bitcoin?
The bitcoin phenomenon has attracted quite a lot of attention lately. It has been discussed in many blogs and media websites. But what are they? Are they really money? Can […]
Greece and the Lost Opportunity of the Euro
With the financial crisis affecting the United States and Europe, here and there are comments and concerns on what could happen with the dollar, the euro and even the international […]
Two Problems with Price Level Stability
Price stability has become the main concern of central banks around the world. Both, inflation and deflation, are considered bad outcomes. But because deflation is considered to be worst than […]
The Effect of Deposit Insurance on the Good Bank and the Bad Bank
Deposit insurance, it is argued, is needed to cope with inherent fragility of banking and money market. To avoid panics, or financial crisis, a safety net on the system is […]
Private Clearing House Associations versus Central Banks
A relevant figure in a free banking scenario is that of the private clearing house association (CHA). The CHA facilitates clearing services among its members, supplies some regulation to the […]
Stateless Money: The Example of Somalia
It is a common belief that money and the financial markets are inherently unstable; or that a financial crisis is an easy outcome in the case of a random event […]