Banking's Past, Present, and Future
A little over a year ago, I argued that the Federal Reserve should consider charging banks for the privilege of holding their reserves. The reasoning for this is straightforward: charging interest on banks (instead of paying interest, as the Fed now does) will encourage banks to come up with more profitable uses for their money, … Read more
On December 19 Standard and Poor’s raised its rating of Greek sovereign debt by six notches, to B-minus from selective default. The government’s decision to prosecute a statistician indicates that the upgrade was premature. According to S&P, the ratings change “balances our view of euro-zone member states’ determination to support Greece’s euro-zone membership and the … Read more