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Discussion of Robin Greenwood and David Scharfstein: The growth of modern finance

Brad DeLong, professor of economics | September 28, 2013

On Robin Greenwood and David Scharfstein: The Growth of Modern Finance: The financial sector does six things: Payments–so that your web of exchange can span the world, rather than just be limited to people you know well and can trust not to welsh on the deal Security–so that your command over economic resources can remain … Continue reading »

Wealth and motivations for saving

Carola Conces Binder, Ph.D. candidate, economics | March 24, 2013

In a recent column in the Atlantic called “Building the Wealth of the Poor and Middle Class,” Noah Smith suggests a few ways to improve the unequal distribution of wealth in America. He notes that “one obvious thing we could do to make wealth more equal is – surprise! -redistribution…Giving the poor and middle-class more income will … Continue reading »

Overheating and the Fed

Carola Conces Binder, Ph.D. candidate, economics | February 7, 2013

Governor Jeremy Stein of the St. Louis Federal Reserve gave a speech on February 7 called “Overheating in Credit Markets: Origins, Measurement, and Policy Responses.” Overheating is a term he uses to describe a credit market with low interest rates, lax lending standards, and high risk-taking by investors “reaching for yield.” The problem with overheating is that … Continue reading »