Author Archives: finhistomics

Tirole’s Nobel Prize in Economics and Its Implications for Regulation

This year’s economics Nobel Prize (technically, it is not a Nobel Prize, but the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel) went to the French economist Jean Tirole. The price was awarded for his “analysis of market power and regulation”, according to the Royal Swedish Academy of Sciences. Tirole has devoted […]

Regulators’ Irrational Rationality and Bankers’ Rational Irrationality: Too Big to Fail, Self-Regulation, Moral Hazard and the Global Financial Crisis, 2007-2009

A new article by me will be published in the Oesterreichische Zeitschrift fuer Geschichtswissenschaften (OeZG) in early 2015. The Working Paper may be downloaded from the Social Science Research Network (SSRN). The abstract is provided below, for the full text, please visit SSRN. Abstract: Banks and other financial institutions which were too-big-to-fail (TBTF) played a […]

Cyprus: Bulwark of Capitalism

In the night on Monday, Cyprus’s government agreed on a haircut of up to 40% on deposits exceeding €100,000 and bondholders, while protecting savings below the threshold of €100,000 (which are insured under the Deposit Protection Scheme, DPS) in order to restructure Cyprus’s ailing two big banks. Earlier plans which envisaged a haircut of at […]

Originally posted on Gowers's Weblog:
The Dutch publisher Elsevier publishes many of the world’s best known mathematics journals, including Advances in Mathematics, Comptes Rendus, Discrete Mathematics, The European Journal of Combinatorics, Historia Mathematica, Journal of Algebra, Journal of Approximation Theory, Journal of Combinatorics Series A, Journal of Functional Analysis, Journal of Geometry and Physics,…

Who Benefits and Who Loses from TBTF Banks: The Economics of Too-Big-to-Fail

(Picture taken from Sucker Punch Cinema) In response to German finance minister Peer Steinbrück’s plans to separate commercial banking from other businesses, Mr Achleitner recently argued against splitting up universal banks like Deutsche Bank, on whose board he sits, by claiming that all experts know that broadly diversified companies like universal banks pose less risk than […]

Resurrecting the Gold Standard: Myths and Reality of Gold-Backed Currencies

The recent debate in the Republican Party over the gold standard has kindled interest in whether or not re-introducing gold-backed currencies would be a good idea. It is advisable to begin with a word of caution. Although it is commonly talked about “THE Gold Standard”, there is no such thing as one particular gold standard. […]

Apple vs Samsung – Patents, Monopolies & Innovation

The verdict unanimously delivered by the 9-head jury in San Jose in the Apple vs Samsung case raises several questions – apart from the obvious one whether the question posed by Judge Koh to Apple’s lawyer if he smoked crack should really have been addressed to the jury. In this context, granting Apple compensation for patent […]