Intertemporal discoordination in the 100% reserve banking system

The 100%-Money plan advocated by Fisher (1936) has a Misesian flavor as it aims at mitigating intertemporal discoordination by reducing (i) the discrepancy between investment and voluntary savings, and (ii) the manipula­ tion of interest rates by monetary injections. Recent proposals to adopt the 100% reserve banking system, such as the Chicago Plan Revisited by Benes and Kumhof (2013) or the Limited Purpose Banking by Kotlikoff (2010), take, however, a fundamentally different attitude towards the role of the central bank in the credit market and ignore that intertemporal discoordination arises inde­ pendently from whether the credit expansion is financed by the creation of outside or inside money. These plans allow the central bank to inject outside money into the credit market and to effectively lower interest rates in negative territory in order to overcome the limit that the liquidity trap sets to credit expan­ sion in the fractional reserve system. Although such an attempt may succeed in stimulating the economy in the short run, it exacerbates intertemporal discoor­ dination and weakens economic stability in the long run. Key words: monetary systems, 100% reserve banking, Chicago Plan, Austrian Business Cycle Theory. JEL Classification: E30, E42, E58, B53. Resumen: El plan «dinero 100%» defendido por Fisher (1936) tiene connotacio­ nes misianas en el sentido en que tiene como objetivo mitigar la descoordinación intertemporal reduciendo (i) la diferencia entre la inversión y el ahorro voluntario y (ii) la manipulación de los tipos de interés a través de inyecciones de dinero. Las recientes propuestas para adoptar un sistema de coficiente de reservas ban­ carias del 100%, tales como el Chicago Plan Revisited de Benes y Kumhof (2013) o el Limited Purpose Banking de Kotlikoff (2010), toman, sin embargo, una actitud esencialmente diferente hacia el papel del banco central en el mercado de cré­ dito, e ignora que la descoordinación intertemporal surge independientemente de si la expansión crediticia se financia mediante la creación de dinero desde dentro (inside money) o fuera (outside money). Estos planes permiten al banco central inyectar dinero desde fuera en el mercado de crédito y reducir los tipos de interés de manera efectiva en valores negativos con el fin de superar el límite que establece la trampa de la liquidez a la expansión del crédito en el sistema de reserva fraccionaria. Aunque tal intento puede tener éxito a la hora de esti­ mular la economía en el corto plazo, acentúa la descoordinación intertemporal y debilita la estabilidad económica a largo plazo. Palabras clave: Sistemas monetarios, banca de reserva del 100%, Plan Chica­ go, teoría austriaca del ciclo económico. Clasificación JEL: E30, E42, E58, B53.

US rank choice voting could encourage moderate shift

Significance This will make it the largest jurisdiction in the United States to use RCV in an election. Maine became the first state in the United States to use RCV in the 2018 midterm elections. Impacts The costs of mounting a state referendum to adopt RCV can be high, requiring support from individuals and foundations. Reliance on external funding for a pro-RCV campaign can leave it vulnerable to charges of “outside money” affecting a state. After moves to reduce the partisan redrawing of constituency boundaries, RCV could become the next issue for electoral reform.

Econometric Method for Estimating the Impact of Tourism Spending on County Employment in South Carolina

This article analyzes their university backgrounds. Tourism can promote job growth and income growth in regional economies. Policymakers in the regional government promote tourism to bring outside money into the local economy. Using accommodation tax revenue data published by the South Carolina Department of Revenue, this paper estimates the employment impact of tourism spending in South Carolina counties. The OLS regression results show that increased tourism spending, as measured by the accommodation tax, leads to increased total county employment, increased county employment in the accommodation sector (NAICS 721), increased county employment in full-service restaurant sector (NAICS 7221) and increased county employment in arts, entertainment, and recreation sector (NAICS 71).

Going National: Immigration Enforcement and the Politicization of Local Police

ABSTRACTThis article develops a theory of when and how political nationalization increases interest in local elections using evidence from county sheriff elections. A quintessentially local office, the sheriff has long enjoyed buffers from ideological or partisan politics. However, many sheriff elections since 2016 were waged on ideological grounds as progressive challengers—often backed by outside money—linked their campaigns to opposition to President Trump. I argue that this “redirected nationalization” becomes possible when a salient national issue impinges on a local government service, enabling challengers to expand the scope of conflict against valence-advantaged incumbents. In the highly nationalized 2018 midterm election, the question of cooperation with Immigration and Customs Enforcement in the nation’s jails provided a compelling link between local sheriffs and national politics, infusing new interest and energy in these races. Although redirected nationalization can help align local policies with voter preferences, the politicization of local law enforcement also might undermine police professionalism and credibility.

Revisiting the concept of liquidity in liquidity preference

This paper revisits Keynes’s theory of liquidity preference to emphasise its reliance on liquidity. By clarifying the meaning of ‘liquidity’ in the context of the theory, it is argued that liquidity preference is not based on the demand for money, the most tradable asset, or a theory of bearishness. Instead, liquidity preference represents a demand for price-protected (capital-safe) assets, most directly inside and outside money, but also cash-equivalent quasi-money such as self-liquidating assets and security repurchase agreements (repo). The theory of liquidity preference explains that the public is willing to forgo interest income to hold short-term price-protected assets due to the capital and price uncertainty associated with relying on market liquidity, or how easy it is to convert an asset into money. It follows that the rate of interest is a monetary phenomenon and is determined independently of saving and investment.

The Consequences of Negative Campaigning

Chapter 8 begins with a review of the book’s findings regarding the impact of negative campaigning in U.S. Senate races and assesses the evidence for the tolerance and tactics theory of negativity. The tolerance and tactics theory of negativity helps to resolve several debates in the negative campaigning literature. For example, in light of the book’s findings, it is easier to predict the types of negative advertisements that are more likely to influence people’s evaluations of candidates. Similarly, the theory and evidence advance explanations about when negative messages will enhance turnout and when these messages are more likely to depress turnout. Since the bulk of negative advertisements are sponsored by outside groups, the chapter examines how the increased role of outside money, especially dark money, shapes political campaigns and citizens’ attitudes and actions. The chapter concludes by discussing the role of contemporary campaigns in America.

Naruse, Mikio (1905–1969)

Naruse Mikio was a popular and critically renowned Japanese film director who was active from the early 1930s to the mid-1960s. He completed eighty-nine films, of which sixty-seven survive. From a poor family and raised by his sisters, he began work as a prop assistant at Shochiku studios at the age of fifteen, where he would direct his first film ten years later. Beginning with slapstick comedies, Naruse’s interest in urban poverty and strong, if ill-fated female characters drew him to the josei-eiga (woman’s film) genre. By the mid-1930s he had moved to PCL (Photo-Chemical Laboratories, later incorporated into Toho Studios), where he would work for the following three decades, undertaking additional projects at Shintoho and Daiei. While his prewar silent pictures display early experimentation with voice-over, flashbacks, and montage sequences, his work in sound and later widescreen and color is characterized by exacting mise-en-scène, and quick unrelenting cuts following performers’ gestures and expressions. Naruse’s modernist economy of style moves at the pace of urban life, thrusting his female protagonists (often Takamine Hideko, who starred in seventeen of the director’s best-known films) into the financialization of interpersonal relationships, whereby yearning for love outside money and family is dulled by having to survive the daily hardships of patriarchal society and monetary debt.