In recent months Dr. Tiemann has focused his research into economic and banking history on the California Gold Rush. He plans to produce a series of articles from that work. In this article, though, Dr. Tiemann examines the fascinating period just before the Gold Rush, when California’s economy suffered a severe shortage of cash and an absence of banks. Read about William A. Leidesdorff, a San Francisco merchant in the 1840s, who dealt with those handicaps by becoming, in effect, his own banker.
Dr. Tiemann takes a deep look at the historical antecedents, including Ely’s Rebellion and the writings of Joseph Hawley, to show why our monetary system relies on the soundness of Government credit. Dr. Tiemann maintains that keeping the public credit in good standing is of paramount importance.
Dr. Tiemann takes a look at three specific instances of actions relating to U.S. industry which suggest that Trump is making a dramatic shift in both the style and substance of national industrial policy and answers the question of what these say about the type of Industrial Policy we can expect to see out of the Trump […]
The Federal Open Market Committee is scheduled to have one of its regularly-scheduled meetings with Fed Chair Janet Yellen making an announcement on interest rate policy. Most observers expect the Fed to leave short-term interest rates unchanged for now, but the FOMC’s likely actions in the near future could be to raise rates. Dr. Tiemann reviews the […]
Overturning NFL Commissioner Roger Goodell’s imposition of a four-game suspension on Patriots uber-star quarterback Tom Brady provides organized labor with a bigger gain from the ruling than Patriots fans received. Leaders of organized labor should see in the ruling a strengthening of both the role of collective bargaining agreements and protections for workers facing arbitrary and capricious […]
US Congressional hardliners have been threatening not to raise the debt limit again. They may not understand how central US Treasury securities are to the US and global monetary and banking system. Dr. Tiemann explains the importance of raising the debt ceiling and the catastrophic consequences that could result from a failure by Congress to act in […]
Dr. Tiemann examines the assertion that Dodd-Frank has contributed to a decline in bond liquidity. Using ETF, Dr. Tiemann evaluates Bond market liquidity before and after Dodd-Frank to see whether there has been a decline in bond market liquidity.
In his note on market competition Dr. Tiemann writes: “It’s an attempt to dig a little deeper than the stylized models we study in economics courses, and think a bit about how competition operates in the real economy.”
This note helps readers understand how corporate management thinks about and makes deliberate choices about their capital structure, depending upon market conditions, discount rates, level of employment in the economy and other factors. A refresher on Modigliani and Miller, and assessment of why companies appear to be doing better yet unemployment remains high.
The Federal Reserve has a dual mandate to both maintain price stability and reasonably full employment at the same time. This differs from that of its counterparts in other countries, which focus primarily on fighting inflation. Because of this, the Fed's monetary action are often overtly counter-cyclical, raising or lowering interest rates or tightening or loosening money […]
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