As all dedicated Alt-M readers know, I am a big fan of the Canadian banking and monetary system that flourished between Canada's Confederation in 1867 and the outbreak of the First World War. Besides thinking it was a darn good system, I also regard it as the…
About a month ago, a Facebook post drew my attention to an attempt, by Casey Pender of Prague's CEVRO Institute, to test my thesis that free banking contributes to NGDP stability using statistical evidence from Canada, which had a relatively free banking system between 1867, the year of…
As policymakers begin to rethink the current financial regulatory regime, it is important to reconsider the relation between banking regulation, financial stability, and economic vitality. With this in mind, we focused this year’s Cato Summit on Financial Regulation on banking and brought it to one of the…
Three years ago, I wrote about the importance of intragroup funding, liquidity, and capital flows within a banking group composed of multiple entities , as is common nowadays. In short, I suggested that, based on the evidence, intragroup funding — or “internal capital markets,” as some academics refer to…
(This is the last of a three-part series.) In my first and second posts addressing a recent Bank of Canada Working Paper by Ben Fung, Scott Hendry, and Warren E. Weber, I argued that the paper exaggerates the shortcomings of Canada's 19th-century currency system, with its reliance…