In a previous
post, I discussed how the Bristol pound deals with the last period problem
associated with fiat money (click here). The Bristol pound seems to be doing well – over 300 retailers plus
service providers such as solicitors, buskers, and private tutors accept
it. In fact, the Bristol pound has been
so successful that several big businesses want a part of the action. You can read more by clicking here and here. (Hat tip to Chris Colvin, a former
Bristolian).
Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak and Todd Mitton have written a paper on whether firms connected to Timothy Geithner benefited from these connections. They do so by looking at how stocks of these firms reacted to the announcement that he was a nominee for Treasury Secretary in November 2008. They find that there were large abnormal returns for connected firms. Below is the paper's abstract and the full paper is available here . The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small ne...