Grading Our Policymakers
Total Page:16
File Type:pdf, Size:1020Kb
Load more
Recommended publications
-
Still Too Big to Fail
Still Too Big To Fail Opportunities for Regulatory Action Seven Years after the Bear Stearns Rescue May 7, 2015 By Jennifer Taub Professor of Law Vermont Law School A project of the Corporate Reform Coalition About the Author Jennifer Taub is a professor of law at Vermont Law School. She is the author of the book Other People’s Houses: How Decades of Bailouts, Captive Regulators, and Toxic Bankers Made Home Mortgages a Thrilling Business (Yale Press, 2014). A graduate of Yale College and Harvard Law School, before joining academia, Taub was an associate general counsel at Fidelity Investments. About the Corporate Reform Coalition The Corporate Reform Coalition is made up of more than 75 or- ganizations and individuals from good governance groups, en- vironmental groups and organized labor, and includes elected officials and socially responsible investors. The coalition seeks to promote corporate governance solutions to combat undisclosed money in elections. For more information, please visit www.CorporateReformCoalition.org. Corporate Reform Coalition Democracy through Accountability May 6, 2015 Contents Summary 4 Remembering Bear Stearns 7 Lehman, AIG, and the Bailouts 10 Gaps and Opportunities for Regulatory Action 15 1. Ending TBTF Bailouts with Living Wills and Emergency Lending Accountability 16 2. Further Reduce Excessive Borrowing by the Top Banks 17 3. Reducing Dependence on Short-Term Wholesale Loans and Providing Transparency 18 4. Close Loopholes for Evading Derivatives Regulation 19 5. Accountability Through Pay Rules 21 6. Political Spending Disclosure Requirements 22 Conclusion 24 Bibliography 26 Still Too Big To Fail: Opportunities for Regulatory Action Summary Seven years after the financial crisis began, many of the conditions that helped cause the near collapse of our banking system — and that were used to rationalize the multi-trillion dollar U.S. -
The Employment Act of 1946: a Half Century of Experience
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Washington University St. Louis: Open Scholarship Washington University in St. Louis Washington University Open Scholarship Weidenbaum Center on the Economy, Murray Weidenbaum Publications Government, and Public Policy Policy Brief 169 4-1-1996 The Employment Act of 1946: A Half Century of Experience Murray L. Weidenbaum Washington University in St Louis Follow this and additional works at: https://openscholarship.wustl.edu/mlw_papers Part of the Economics Commons, and the Public Policy Commons Recommended Citation Weidenbaum, Murray L., "The Employment Act of 1946: A Half Century of Experience", Policy Brief 169, 1996, doi:10.7936/K7571960. Murray Weidenbaum Publications, https://openscholarship.wustl.edu/mlw_papers/143. Weidenbaum Center on the Economy, Government, and Public Policy — Washington University in St. Louis Campus Box 1027, St. Louis, MO 63130. NOT FOR RELEASE BEFORE 2:00 E.S.T. APRIL 26, 1996 Center for the Study of The Employment Act of 1946: American A Half Century of Experience Business Murray_Weidenbaum C918 Policy Brief 169 April 1996 Contact: Robert Batterson Communications Director (314) 935-5676 Washington University Campus Box 120B One Brookings Drive St. Louis. Missouri 63130-4899 The Employment Act of 1946: A Half Century of Experience by Murray Weidenbaum The first half century of experience under the Employment Act of 1946 (originally the Full Employment Bill of 1945) likely has disappointed both the proponents and the opponents of that innovative law. The impact on national economic policy is neither as bad as the opposition feared nor as substantial as the sponsors had hoped. -
Too Many Voters to Fail: in Uencing and Political Bargaining for Bailouts
Too many Voters to Fail: Inuencing and Political Bargaining for Bailouts Linda M. Schilling∗ December 23, 2019 Abstract The paper provides a novel theory of how banks not only exploit but also cause being perceived as 'too big to fail'. Bank creditors are also voters. Economic voting prompts politicians to grant bailouts given a bank failure. The bank's capital structure acts as a tool to impact the electoral vote and thus the bail-out by changing the relative group size of voters who favor as opposed to voters who object the bailout. The creditors' anticipation of high bailouts, in return, allows the bank to reduce funding costs today, by this maximizing revenues. Key words: corporate nance, bail-outs, political economy, economic voting, capital structure, inuencing JEL codes: G3, P16, D72 ∗Ecole Polytechnique CREST, email: [email protected]; CREST, 5 avenue Le Chate- lier, 91120 Palaiseau, France, phone: +33 (0)170266726. I very much thank Allan Drazen for numerous insightful comments. I thank my OxFIT discussant Sergio Vicente and Sean Hundtofte for coming up with the title 'Too many voters to fail'. The paper started o during a 2017 research visit at the Becker Friedman Institute of the University of Chicago and concluded during a research visit at the Simons Institute at UC Berkeley. The hospitality and support of both institutions is greatly acknowledged. This work was also conducted under the ECODEC laboratory of excellence, ANR-11-LABX-0047. 1 Motivation Bank failures are politically important events. When a bank fails, bank creditors at risk of losing money can hold politicians accountable for their losses since creditors are also voters (Anderson, 2007). -
Economic Report of the President.” ______
REFERENCES Chapter 1 American Civil Liberties Union. 2013. “The War on Marijuana in Black and White.” Accessed January 31, 2016. Aizer, Anna, Shari Eli, Joseph P. Ferrie, and Adriana Lleras-Muney. 2014. “The Long Term Impact of Cash Transfers to Poor Families.” NBER Working Paper 20103. Autor, David. 2010. “The Polarization of Job Opportunities in the U.S. Labor Market.” Center for American Progress, the Hamilton Project. Bakija, Jon, Adam Cole and Bradley T. Heim. 2010. “Jobs and Income Growth of Top Earners and the Causes of Changing Income Inequality: Evidence from U.S. Tax Return Data.” Department of Economics Working Paper 2010–24. Williams College. Boskin, Michael J. 1972. “Unions and Relative Real Wages.” The American Economic Review 62(3): 466-472. Bricker, Jesse, Lisa J. Dettling, Alice Henriques, Joanne W. Hsu, Kevin B. Moore, John Sabelhaus, Jeffrey Thompson, and Richard A. Windle. 2014. “Changes in U.S. Family Finances from 2010 to 2013: Evidence from the Survey of Consumer Finances.” Federal Reserve Bulletin, Vol. 100, No. 4. Brown, David W., Amanda E. Kowalski, and Ithai Z. Lurie. 2015. “Medicaid as an Investment in Children: What is the Long-term Impact on Tax Receipts?” National Bureau of Economic Research Working Paper No. 20835. Card, David, Thomas Lemieux, and W. Craig Riddell. 2004. “Unions and Wage Inequality.” Journal of Labor Research, 25(4): 519-559. 331 Carson, Ann. 2015. “Prisoners in 2014.” Bureau of Justice Statistics, Depart- ment of Justice. Chetty, Raj, Nathaniel Hendren, Patrick Kline, Emmanuel Saez, and Nich- olas Turner. 2014. “Is the United States Still a Land of Opportunity? Recent Trends in Intergenerational Mobility.” NBER Working Paper 19844. -
"What Can an Economic Adviser Do When the President Adopts Bad Economic Policies?"
"What Can An Economic Adviser Do When the President Adopts Bad Economic Policies?" Jeffrey Frankel, Harpel Professor, KSG, Harvard University The Pierson Lecture, Swarthmore, April 21, 2005 Summary: What would you do if you were appointed Chair of the Council of Economic Advisers under a president who was committed to one or more specific policies that you considered to be inconsistent with good economics? A look at the experiences of your predecessors over the last 40 years might help illustrate your alternative options. The lecture will review the history. It will then go on to suggest that such conflicts should be particularly acute in the current Administration. The reason is that Republican presidents have increasingly adopted policies-- with regard particularly to budget deficits, trade, the size of government, and inflation -- that deviate from the principles of good economics, and that used to be considered the weaknesses of Democratic presidents. It is a great honor to be giving the Pierson lecture.1 I must confess that I never had Frank Pierson for a course. But he was the senior eminence of the Economics Department when I attended Swarthmore in the early 1970s, having already been associated with the department more than 40 years. In that time, Frank Pierson was known as one of the last professors who still regularly held his honors seminars at his house, with an impressive series of desserts, including make-your-own sundaes, and Irish coffee. The early 1970s were a volatile time of course, with the War in Viet Nam still on.2 In 1972 the big split on campus was between those of us working for McGovern on the left, and the 1 The author wishes to acknowledge help from Peter Jaquette, Arnold Kling, Jeff Miron, Stephen O’Connell, Francis Bator, Michael Boskin, David Cutler, Jason Furman, Gilbert Heebner, William Gale, Jeff Liebman, Peter Orszag, Roger Porter, Charles Schultze, Phillip Swagel, Laura Tyson, Murray Weidenbaum, Marina Whitman, and Janet Yellen. -
Information to Users
INFORMATION TO USERS This manuscript has been reproduced from the microfilm master. UMI films the text directly from the original or copy submitted. Thus, som e thesis and dissertation copies are in typewriter face, while others may be from any type of computer printer. The quality of this reproduction is dependent upon the quality of the copy submitted. Broken or indistinct print, colored or poor quality illustrations and photographs, print bleedthrough, substandard margins, and improper alignment can adversely affect reproduction. In the unlikely event that the author did not send UMI a complete manuscript and there are missing pages, these will be noted. Also, if unauthorized copyright material had to be removed, a note will indicate the deletion. Oversize materials (e.g., maps, drawings, charts) are reproduced by sectioning the original, beginning at the upper left-hand corner and continuing from left to right in equal sections with small overlaps. Photographs included in the original manuscript have been reproduced xerographically in this copy. Higher quality 6” x 9” black and white photographic prints are available for any photographs or illustrations appearing in this copy for an additional charge. Contact UMI directly to order. ProQuest Information and Learning 300 North Zeeb Road, Ann Arbor, Ml 48106-1346 USA 800-521-0600 ____ ® UMI BEFORE THE GREAT SOCIETY: LIBERALISM, DEINDUSTRIALIZATION AND AREA REDEVELOPMENT IN THE UNITED STATES, 1933 - 1965 DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Gregory S. Wilson, M.A. ***** The Ohio State University 2001 Dissertation Committee: Approved by Professor William R. -
The Politics of Economic Growth in Postwar America 1
More The Politics of Economic Growth in Postwar America ROBERT M. COLLINS 1 2000 3 Oxford New York Athens Auckland Bangkok Bogotá Buenos Aires Calcutta Cape Town Chennai Dar es Salaam Delhi Florence Hong Kong Istanbul Karachi Kuala Lumpur Madrid Melbourne Mexico City Mumbai Nairobi Paris São Paulo Singapore Taipei Tokyo Toronto Warsaw and associated companies in Berlin Ibadan Copyright © 2000 Published by Oxford All rights reserved. No by Robert M. University Press, Inc. part of this publication Collins 198 Madison Avenue, may be reproduced, New York, New York stored in a retrieval 10016. system, or transmitted, in any form or by any means, electronic, Oxford is a registered mechanical, trademark of Oxford photocopying, recording, University Press. or otherwise, without the prior permission of Oxford University Press. Library of Congress Cataloging–in–Publication Data Collins, Robert M. More : the politics of economic growth in postwar America / Robert M. Collins. p. cm. Includes bibliographical references and index. ISBN 0–19–504646–3 1. Wealth—United States—History—20th century. 2. United States—Economic policy. 3. United States—Economic conditions—1945–. 4. Liberalism—United States— History—20th Century. 5. National characteristics, American. I. Title. HC110.W4C65 2000 338.973—dc21 99–022524 Design by Adam B. Bohannon 987654321 Printed in the United States of America on acid-free paper For My Parents Contents Preface ix Acknowledgments xiii Prologue: The Ambiguity of New Deal Economics 1 1 > The Emergence of Economic Growthmanship 17 2 > The Ascendancy of Growth Liberalism 40 3 > Growth Liberalism Comes a Cropper, 1968 68 4 > Richard Nixon’s Whig Growthmanship 98 5 > The Retreat from Growth in the 1970s 132 6 > The Reagan Revolution and Antistatist Growthmanship 166 7 > Slow Drilling in Hard Boards 214 Conclusion 233 Notes 241 Index 285 Preface bit of personal serendipity nearly three decades ago inspired this A book. -
The Too BIG to FAIL Problem Is Alive, Well and Getting Worse
The Too BIG to FAIL Problem Is Alive, Well and Getting Worse Presentation to the Financial Stability Board workshop at the Federal Reserve Bank of New York SEPTEMBER 16, 2019 Dennis M. Kelleher, President and CEO, Better Markets, 1825 K Street, NW, Washington, DC 20006 “Those who do not learn from history are doomed to repeat it.” - George Santayana BetterMarkets.com | © 2019 Better Markets, Inc. | 1 Too BIG to FAIL Is Alive andBetter Well Markets Lehman Brothers collapsed into bankruptcy on September 15, 2008, 11 years ago yesterday, which ignited the worst financial crash since the Great Crash of 1929 and caused the worst economy since the Great Depression of the 1930s. “Those who do not learn from history are doomed to repeat it.” - George Santayana That may be fine for decisions by individuals who suffer the consequences from their own actions. • However, it is a dereliction of duty for public officials, policymakers and regulators who should know better given very recent history, • particularly because the American people eventually are going to suffer the consequences of their actions. BetterMarkets.com | © 2019 Better Markets, Inc. | 2 Too BIG to FAIL Is Alive andBetter Well Markets FSB stated purpose of the evaluation of too-big-to-fail (TBTF) systemiCally important banks (SIBs) reforms “Assess wHetHer tHe implemented reforms are reducing tHe systemic and moral Hazard risks associated witH systemically important banks (SIBs). It will also examine tHe broader effects of tHe reforms to address TBTF for SIBs on tHe overall functioning of tHe financial system.” BetterMarkets.com | © 2019 Better Markets, Inc. | 3 Too BIG to FAIL Is Alive andBetter Well Markets The better objeCtive of the FSB evaluation of TBTF SIB reforms “Assess wHetHer tHe implemented reforms are [sufficiently and effectively] reducing tHe systemic and moral Hazard risks associated witH systemically important banks (SIBs). -
Unemployment Crisis
UNEMPLOYMENT CRISIS HEARING BEFORE THE JOINT ECONOMIC COMMITTEE CONGRESS 01 THE UNITED STATES NINETY-SEVENTH CONGRESS SECOND SESSION DECEMBER 9, 1982 Printed for the use of the Joint Economic Committee U.S. GOVERNMENT PRINTING OFFICE 18-593 O WASHINGTON : 1983 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis JOINT ECONOMIC COMMITTEE (Created pursuant to sec. 5(a) of Public Law 304, 79th Cong.) HOUSE OF REPRESENTATIVES SENATE HENRY S. REUSS, Wisconsin, Chairman ROGER W. JEPSEN, Iowa, Vice Chairman RICHARD BOLLING, Missouri WILLIAM V. ROTH, J r ., Delaware LEE H. HAMILTON, Indiana JAMES ABDNOR, South Dakota GILLIS W. LONG, Louisiana STEVEN D. SYMMS, Idaho PARREN J. MITCHELL, Maryland PAULA HAWKINS, Florida AUGUSTUS F. HAWKINS, California MACK MATTINGLY, Georgia CLARENCE J. BROWN, Ohio LLOYD BENTSEN, Texas MARGARET M. HECKLER, Massachusetts WILLIAM PROXMIRE, Wisconsin JOHN H. ROUSSELOT, California EDWARD M. KENNEDY, Massachusetts CHALMERS P.WYLIE, Ohio PAUL S. SARBANES, Maryland J a m e s K. Galbraith, Executive Director Bruch II. B artlett, Deputy Director (II) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis CONTENTS WITNESS AND STATEMENTS T h u r s d a y , D e c e m b e r 9, 1982 Jepsen, Hon. Roger W., vice chairman of the Joint Economic Committee: Page Opening statement- _____ ________________ _____ _______ ___ 1 Reuss, Hon. Henry S., chairman of the Joint Economic Committee: Open ing statement------------------------- _ ----------------- ------------- ----- <MC0 Feldstein, Hon. Martin S.. Chairman, Councl of Economic Advisers— SUBMISSION FOR THE RECORD T h u r s d a y , D e c e m b e r 9, 1982 Brown, Hon. -
The Pros and Cons of Globalization
Washington University in St. Louis Washington University Open Scholarship Weidenbaum Center on the Economy, Murray Weidenbaum Publications Government, and Public Policy Special 7 1-1-2001 The Pros and Cons of Globalization Murray L. Weidenbaum Washington University in St Louis Robert Batterson Follow this and additional works at: https://openscholarship.wustl.edu/mlw_papers Part of the Economics Commons, and the Public Policy Commons Recommended Citation Weidenbaum, Murray L. and Batterson, Robert, "The Pros and Cons of Globalization", Special 7, 2001, doi:10.7936/K71C1V2Z. Murray Weidenbaum Publications, https://openscholarship.wustl.edu/mlw_papers/175. Weidenbaum Center on the Economy, Government, and Public Policy — Washington University in St. Louis Campus Box 1027, St. Louis, MO 63130. II II II IJ. II II II THE PROS AND CONS OF GLOBALIZATION by Robert Batterson and Murray Weidenbaum January 2001 Center for the Study of American Business CS18 Washington University in St. Louis ( .. About the Authors '·Robert Batterson Robert Batterson is the communications director at the Center for the Study ofAmerican Business at Washington University. He has been with the Center since 1992 and serves as the primary public affairs officer to the national media, government, business, academia, and the public at large. He has also served as managing editor and director ofCSAB publications. He is coeditor and coauthor (with Kenneth Chilton and Murray Weidenbaum) of The Dynamic American Firm (Boston: K.luwer Publishers, 1996). His research interests include international trade, global competition, and international affairs. He has written numerous articles on international trade issues that have been published in newspapers including the Journal ofCommerce, Investors Business Dail~ Miami Herald, Houston Chronicle, San Diego Union-Tribune, St. -
Systemically Important Or “Too Big to Fail” Financial Institutions
Systemically Important or “Too Big to Fail” Financial Institutions Marc Labonte Specialist in Macroeconomic Policy Updated September 24, 2018 Congressional Research Service 7-5700 www.crs.gov R42150 Systemically Important or “Too Big to Fail” Financial Institutions Summary Although “too big to fail” (TBTF) has been a long-standing policy issue, it was highlighted by the financial crisis, when the government intervened to prevent the near-collapse of several large financial firms in 2008. Financial firms are said to be TBTF when policymakers judge that their failure would cause unacceptable disruptions to the overall financial system. They can be TBTF because of their size or interconnectedness. In addition to fairness issues, economic theory suggests that expectations that a firm will not be allowed to fail create moral hazard—if the creditors and counterparties of a TBTF firm believe that the government will protect them from losses, they have less incentive to monitor the firm’s riskiness because they are shielded from the negative consequences of those risks. If so, TBTF firms could have a funding advantage compared with other banks, which some call an implicit subsidy. There are a number of policy approaches—some complementary, some conflicting—to coping with the TBTF problem, including providing government assistance to prevent TBTF firms from failing or systemic risk from spreading; enforcing “market discipline” to ensure that investors, creditors, and counterparties curb excessive risk-taking at TBTF firms; enhancing regulation to hold TBTF firms to stricter prudential standards than other financial firms; curbing firms’ size and scope, by preventing mergers or compelling firms to divest assets, for example; minimizing spillover effects by limiting counterparty exposure; and instituting a special resolution regime for failing systemically important firms. -
The Myth of Too Big to Fail, Imad A
Palgrave Macmillan Studies in Banking and Financial Institutions Series Editor: Professor Philip Molyneux The Palgrave Macmillan Studies in Banking and Financial Institutions are international in orientation and include studies of banking within particular countries or regions, and studies of particular themes such as Corporate Banking, Risk Management, Mergers and Acquisitions, etc. The books’ focus is on research and practice, and they include up-to-date and innovative studies on contemporary topics in banking that will have global impact and influence. Titles include: Yener Altunbas¸, Blaise Gadanecz and Alper Kara SYNDICATED LOANS A Hybrid of Relationship Lending and Publicly Traded Debt Yener Altunbas¸, Alper Kara and Öslem Olgu TURKISH BANKING Banking under Political Instability and Chronic High Inflation Elena Beccalli IT AND EUROPEAN BANK PERFORMANCE Paola Bongini, Stefano Chiarlone and Giovanni Ferri (editors) EMERGING BANKING SYSTEMS Vittorio Boscia, Alessandro Carretta and Paola Schwizer COOPERATIVE BANKING: INNOVATIONS AND DEVELOPMENTS COOPERATIVE BANKING IN EUROPE: CASE STUDIES Roberto Bottiglia, Elisabetta Gualandri and Gian Nereo Mazzocco (editors) CONSOLIDATION IN THE EUROPEAN FINANCIAL INDUSTRY Alessandro Carretta, Franco Fiordelisi and Gianluca Mattarocci (editors) NEW DRIVERS OF PERFORMANCE IN A CHANGING FINANCIAL WORLD Dimitris N. Chorafas CAPITALISM WITHOUT CAPITAL Dimitris N. Chorafas FINANCIAL BOOM AND GLOOM The Credit and Banking Crisis of 2007–2009 and Beyond Violaine Cousin BANKING IN CHINA Vincenzo D’Apice and