Money View Reading Group

Reading Group

February 2021 - December 2021

Join the Money View Reading Group to explore various works from the money view perspective.

Webinar Series

Description

Money View Reading Group

Join the Money View Reading Group to explore various works from the money view perspective. The standing meeting time is Wednesdays at 12:00pm ET / 4:00pm GMT / 6:00 pm CET.

Current readings

BIS Working Paper: Breaking free of the triple coincidence in international finance (2015)

https://www.bis.org/publ/work524.htm

The traditional approach to international finance is to view capital flows as the financial counterpart to savings and investment decisions, assuming further that the GDP boundary defines both the decision-making unit and the currency area. This "triple coincidence" of GDP area, decision-making unit and currency area is an elegant simplification but misleads when financial flows are important in their own right. First, the neglect of gross flows, when only net flows are considered, can lead to misdiagnoses of financial vulnerability. Second, inattention to the effects of international currencies may lead to erroneous conclusions on exchange rate adjustment. Third, sectoral differences between corporate and official sector positions can distort welfare conclusions on the consequences of currency depreciation, as macroeconomic risks may be underestimated. This paper illustrates the pitfalls of the triple coincidence through a series of examples from the global financial system in recent years and examines alternative analytical frameworks based on balance sheets as the unit of analysis.

Making Money: Coin, Currency, and the Coming of Capitalism by Christine Desane (2015)

Money travels the modern world in disguise. It looks like a convention of human exchange - a commodity like gold or a medium like language. But its history reveals that money is a very different matter. It is an institution engineered by political communities to mark and mobilize resources. As societies change the way they create money, they change the market itself - along with the rules that structure it, the politics and ideas that shape it, and the benefits that flow from it.
One particularly dramatic transformation in money's design brought capitalism to England. For centuries, the English government monopolized money's creation. The Crown sold people coin for a fee in exchange for silver and gold. 'Commodity money' was a fragile and difficult medium; the first half of the book considers the kinds of exchange and credit it invited, as well as the politics it engendered. Capitalism arrived when the English reinvented money at the end of the 17th century. When it established the Bank of England, the government shared its monopoly over money creation for the first time with private investors, institutionalizing their self-interest as the pump that would produce the money supply. The second half of the book considers the monetary revolution that brought unprecedented possibilities and problems. The invention of circulating public debt, the breakdown of commodity money, the rise of commercial bank currency, and the coalescence of ideological commitments that came to be identified with the Gold Standard - all contributed to the abundant and unstable medium that is modern money. All flowed as well from a collision between the individual incentives and public claims at the heart of the system. The drama had constitutional dimension: money, as its history reveals, is a mode of governance in a material world. That character undermines claims in economics about money's neutrality. The monetary design innovated in England would later spread, producing the global architecture of modern money.

Past readings

The Art of Central Banking (Chapter IV) by Ralph Hawtrey (1933)
Minsky by Daniel H. Neilson (2019)

Future suggested readings

The New Lombard Street by Perry Mehrling
The Art of Central Banking by Ralph Hawtrey
The World in Depression by Charles Kindleberger
Controlling Credit by Eric Monnet
Money Interest and Public Interest by Perry Mehrling
Fischer Black and the Revolutionary Theory of Finance by Perry Mehrling
The Wheels of Commerce by Fernand Braudel (selected chapters)
Bonds without Borders by Chris O’Malley
The Rise of Carry by Jamie Lee et al
The Great Demographic Reversal by Charles Goodhart et al

UPCOMING EVENTS

Online

19 May 2021

Webinar

BIS Working Paper: Breaking free of the triple coincidence in int. finance

This week we will discuss the 2015 BIS Working Paper 'Breaking free of the triple coincidence in international finance'. Abstract The traditional approach to international finance is to view capital flows as the financial counterpart to savings and investment decisions, assuming further that the GDP boundary defines both the decision-making unit and the currency area. This "triple coincidence" of GDP area, decision-making unit and currency area is an elegant simplification but misleads when financial flows are important in their own right. First, the neglect of gross flows, when only net flows are considered, can lead to misdiagnoses of financial vulnerability. Second, inattention to the effects of international currencies may lead to erroneous conclusions on exchange rate adjustment. Third, sectoral differences between corporate and official sector positions can distort welfare conclusions on the consequences of currency depreciation, as macroeconomic risks may be underestimated. This paper illustrates the pitfalls of the triple coincidence through a series of examples from the global financial system in recent years and examines alternative analytical frameworks based on balance sheets as the unit of analysis. https://www.bis.org/publ/work524.htm

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Online

26 May 2021

Webinar

Ralph G. Hawtrey Discussion with David Glasner

Welcome to our discussion of Ralph G. Hawtrey with David Glasner. After our reading of Art of Central Banking, we'd like to dedicate this discussion to deepening our understanding of Hawtrey's ideas and how they apply to our modern context. David Glasner, economist at Federal Trade Commission, is the creator of Uneasy Money, a blog dedicated to 'Commentary on monetary policy in the spirit of R. G. Hawtrey'.

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Online

2 Jun 2021

Webinar

Christine Desan - Making Money | Session 1

This is the first of three sessions to discuss Christine Desan's book Making Money: Coin, Currency, and the Coming of Capitalism. For this session, we will begin by discussing the introduction and chapters 1-3. Book Description: "Money travels the modern world in disguise. It looks like a convention of human exchange - a commodity like gold or a medium like language. But its history reveals that money is a very different matter. It is an institution engineered by political communities to mark and mobilize resources. Associeties change the way they create money, they change the market itself - along with the rules that structure it, the politics and ideas that shape it, and the benefits that flow from it."

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Online

16 Jun 2021

Webinar

Christine Desan - Making Money | Session 2

This is the second of three sessions to discuss Christine Desan's book Making Money: Coin, Currency, and the Coming of Capitalism. For this session, we will discuss chapters 4-8. Book Description: "Money travels the modern world in disguise. It looks like a convention of human exchange - a commodity like gold or a medium like language. But its history reveals that money is a very different matter. It is an institution engineered by political communities to mark and mobilize resources. Associeties change the way they create money, they change the market itself - along with the rules that structure it, the politics and ideas that shape it, and the benefits that flow from it."

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Online

30 Jun 2021

Webinar

Christine Desan - Making Money | Session 3

This is the third of three sessions to discuss Christine Desan's book Making Money: Coin, Currency, and the Coming of Capitalism. For this session, we will discuss chapters 9-11 and the conclusion. Book Description: "Money travels the modern world in disguise. It looks like a convention of human exchange - a commodity like gold or a medium like language. But its history reveals that money is a very different matter. It is an institution engineered by political communities to mark and mobilize resources. Associeties change the way they create money, they change the market itself - along with the rules that structure it, the politics and ideas that shape it, and the benefits that flow from it."

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PAST EVENTS

Online

24 Mar 2021

Webinar

Minsky | Session 1

Minsky by Daniel H. Neilson --Flyer and discount code for book-- March, 24th March, 1:00pm ET / 5:00pm GMT / 6:00 pm CET (attention: switch to daylight savings time) Chapters discussedCh 1 - IntroductionCh 2 - Financial capitalismCh 3 - A payments theory of financeCh 4 - The inadequacy of economics

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Online

31 Mar 2021

Webinar

Minsky | Session 2

Minsky by Daniel H. Neilson --Flyer and discount code for book-- March 31st, 1:00pm ET / 5:00pm GMT / 7:00 pm CET Chapters discussedCh 5 - Making the marketCh 6 - Last resortCh 7 - The resilience of economicsCh 8 - Minsky for all moments

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Online

7 Apr 2021

Webinar

Minsky | Session 3

Join us for a discussion with Dan Neilson, the author of 'Minsky'.

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Online

21 Apr 2021

Webinar

The Art of Central Banking - Ralph Hawtrey (1933) | Session 1

Welcome to our discussion of Chapter IV - The Art of Central Banking (from Ralph Hawtrey's book with the same title). For this session, we will be focusing on the following sub-chapters (pages 116 - 174): The Lender of Last ResortThe London Discount MarketThe Bank of England Before 1844The Bank of England, 1844-73Eligible Bills and SecuritiesThe Bank of England and the Note IssueBank Rate and Foreign ExchangesBank Rate After 1844Attracting Foreign MoneyThe Cunliffe CommitteeRelease and Absorption of CashThe International System.The Central Bank's Power Over Credit.The Response of the Borrowers.Credit For Fixed Capital and the Stock Exchange.The Inherent Instability of Credit.

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Online

5 May 2021

Webinar

The Art of Central Banking - Ralph Hawtrey (1933) | Session 2

Welcome to our discussion of Chapter IV - The Art of Central Banking (from Ralph Hawtrey's book with the same title). For this session, we will be focusing on the following sub-chapters (pages 174 - 302): The Gold StandardExternal InvestmentInternational Short-term InvestmentThe Financing of International TradeThe Value of GoldGold ReservesLondon and the Trade CycleStabilisation in the United States, 1922-28Gold and Money since 1914The Depression of 1929-1931The Crisis of 1931Mutual Support of Central BanksSpecial Responsibilities of LondonThe American PositionThe Responsibility for the Depression and CrisisThe Conditions of Future StabilityGold ReservesStabilisation without GoldCentral Banks and InflationAn International Central Bank

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Working groups
  • Financial Stability
  • History of Economic Thought
  • Economic History
  • Finance, Law, and Economics
Project Organizers
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Jay Pocklington

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Larissa de Lima

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Alex Howlett

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Win Monroe

For questions, the Project Organizers.

YSI Webinar

The Art of Central Banking - Ralph Hawtrey (1933) | Session 2

May 5 2021, 16:00

Welcome to our discussion of Chapter IV - The Art of Central Banking (from Ralph Hawtrey's book with the same title). For this session, we will be focusing on the following sub-chapters (pages 174 - 302):

The Gold Standard
External Investment
International Short-term Investment
The Financing of International Trade
The Value of Gold
Gold Reserves
London and the Trade Cycle
Stabilisation in the United States, 1922-28
Gold and Money since 1914
The Depression of 1929-1931
The Crisis of 1931
Mutual Support of Central Banks
Special Responsibilities of London
The American Position
The Responsibility for the Depression and Crisis
The Conditions of Future Stability
Gold Reserves
Stabilisation without Gold
Central Banks and Inflation
An International Central Bank

Recording

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Time & Date

Start: May 5 2021, 16:00*

Duration: 60 minutes

*Time is displayed in your local time zone (Africa/Abidjan).

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Topic: The Art of Central Banking - Ralph Hawtrey (1933) | Session 2

Time: May 5 2021, 16:00 (Timezone: Africa/Abidjan)

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