Nicolás Cachanosky
Neutral Money?
The idea of money neutrality is a cornerstone in formal monetary theory. It is not free, however, of some controversy. If there are changes in money supply, why will the […]
Are Bank Runs a Problem for laissez-faire Banking?
The problem of bank runs is probably the most serious concern in monetary economics. It is clear that if all clients claim back their depositors together the bank will fail. […]
Why Study Free Banking?
Last Tuesday ATLAS’ Sound Money Project held a panel with the title of “Making the Case for Sound Money” at the 2011 APEE Conference. Jorge Borlandelli from The Nassau Institute, […]
Was There a Saving Glut or a Credit Expansion Glut?
The Greenspan-Bernanke explanation on the cause of the financial bubble rests on the theory of the saving glut. According to this explanation, the problem was not that the Fed mismanaged […]
Where Did the Free Banking Debate Go?
The discussion in monetary institutions is becoming increasingly relevant in economics. How to deal and avoid financial crisis is an important issue. The recent financial crisis showed that economics might […]
Is the Supply of Money a Natural Monopoly?
In conventional microeconomics the monopoly is associated with inefficiency. Under perfect competition there are no deadweight losses. This means that resources are efficiently allocated. The monopoly, on the other hand, […]
Recovery versus Growth: The Broken Window Fallacy and the GDP Fixation
Extreme events sometimes cause big shifts in the economic point of view of the market process. The recent financial crisis brought back into scene Keynesian economics as a way to […]
Was there a free banking experience in the United States?
An important aspect of the study of sound money is to correctly identify historical cases of free markets in money and banking versus regulated markets in money and banking. If […]
Was Gold Standard too Expensive?
There are two main reasons usually mentioned to prefer fiat money over gold standard. One is that fiat money offers more flexibility to do fine tuning on the economy and […]
Say’s Law and Keynesian Economics
It is reflected in Keynesian economics that the solution to a crisis is to expand aggregate demand. The economy is not producing at its maximum capacity; it is located inside […]