Economic theory long has failed to fully appreciate the role of “credit” in an economy, while the idea of there being a “money supply” is an old one. Undergraduates taking money and banking courses all learn how supply and demand…
Balancing the risks — and rights — of borrowers and lenders
Balancing the rights and responsibilities of borrowers and lenders isn’t easy, but it is important that a society do it well. This not only involves issues of fairness but also of economic efficiency. Get it wrong and not only will…
Better choices would have fixed Social Security
Social Security is very popular with Americans, even if most don’t understand very well how it operates. It is not difficult to make such a social insurance program financially sustainable if the nation has a stable population, or one that…
What went wrong with Social Security
Hubbub about the fiscal cliff has died down temporarily. But in a few weeks we will be back at it and the misunderstandings and misrepresentations on both sides will be worse than in the round just ended. The lull gives…