Regulation seems to cause bank crises, not prevent them

City AM’s Pete Spence (formerly of this parish) reminded me of Mark Carney’s claims in January that free banking systems are more unstable than regulated ones. I’m not so sure. Take a look at these two charts from George Selgin’s Are Banking Crises Free-Market Phenomena?, which mark an x for every instance of a banking panic. […]

Why we’re hoping the wisdom of crowds can beat Mark Carney

Today we’ve launched two betting markets to try to use the ‘wisdom of crowds’ to beat government economic forecasters. Here’s the press release we sent out: The Bank of England’s economic forecasts have been wrong again and again. To counter this, the free market Adam Smith Institute is today (Wednesday 28th August) launching two betting […]

Kick the ‘wise men’ out of the Bank of England

In today’s City AM, newly-minted ASI fellow Lars Christensen (aka The Market Monetarist) writes on the ‘Carney rule’. The Carney announcement is a tiny step in the right direction, he says, but as long as the ‘wise men’ of the Monetary Policy Committee are running monetary policy, policy will be erratic and unpredictable, preventing adequate planning […]

Mark Carney bottles it with baby steps

Mark Carney had the leeway to make radical change here but he’s bottled it with baby steps. The ‘Carney rule’, promising low interest rates and the possibility of more quantitative easing (QE) until unemployment is low or inflation rises, is definitely an improvement on the current regime. It gives firms clearer guidance on the future […]

Allister Heath lays out his Mark Carney wishlist

In a video out this morning, City A.M. editor Allister Heath calls on Mark Carney to bring the Bank of England into the twentieth century by reforming regulation to emphasise greater interaction with the financial sector, opening up its culture to something less dictatorial, and monetary policy to something more like Nominal GDP Targeting or a Productivity […]