Skip to main content

Ron Paul and the Wizard of Oz

The most viewed post on my blog in 2011 was "The Wizard of Oz".  I wonder what this says about the blog's followers?  Are they monetary cranks who would like to see a bimetallic monetary standard introduced or are they simply amused by the allegorical nature of one of their favourite movies?

Talking about monetary cranks, Ron Paul, who is campaigning for the Republican Presidential nomination, favours abolishing the Fed and bringing back the Gold Standard (i.e., the system where gold backs the currency and money issued by banks) - see the short video clip below for an interview with Ron Paul on this issue.   You can read Simon Johnson's critique of Paul's proposals here

Over the next few weeks, I will be blogging about Paul's "free banking" proposal and the economics which underlies its.




Popular posts from this blog

The Failure of Herstatt Bank

As an undergraduate, I was taught about the failure of Herstatt Bank in 1974 and Herstatt risk. This bank was only the 35th largest bank in Germany at the time so why would anyone be interested in studying its failure? Herstatt failed because of its involvement in risky foreign exchange business. When it closed its doors on 26 June 1974, counterparty banks (mainly in New York) had not received dollars due to them because of time-zone differences - this is known as settlement risk. The cross-jurisdictional implications of its failure resulted in the Bank for International Settlements setting up the Basel Committee on Banking Supervision and Herstatt's failure was a key reason for the establishment of real-time gross settlements systems, which ensures that payments between two banks are executed in real time. The Bank of England's Ben Norman has an interesting post on Herstatt over at the Bank's new blog ( Bank Underground ). As well as giving an excellent overview of

Boom and Bust: A Global History of Financial Bubbles

Boom and Bust: A Global History of Financial Bubbles, co-authored with my colleague Will Quinn , is forthcoming in August. It is published by Cambridge University Press and is available for pre-order at Amazon , Barnes and Noble , Waterstones and Cambridge University Press . 

The Great Depression

Marginal Revolution University has a great video on the Great Depression.