Posts Tagged ‘Alexander Hamilton’

  • Thomas Sargent and Cutting the deficit

    Alexander Hamilton, George Washington and the Euro Zone

    Dec 13, 11 • 267 Views • No Comments

    How to decide euro zone policy today? Just look at the U.S. between 1780 and 1840. Saturday, in his Nobel Prize lecture, economist Thomas J. Sargent compared the past U.S. to the current euro zone. He based his talk on 4 questions: Should governments default...  [read more]

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    Default Deja Vu

    Nov 2, 11 • 240 Views • No Comments

    Between its independence in 1829 and 2006, Greece has had 5 defaults or debt reschedulings that occupied a total of 50.6 years.  Described by Rogoff and Reinhart in their 2008 paper and book, This Time It’s Different, few nations break out of a...  [read more]

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    Euro Deal Primer

    Oct 28, 11 • 293 Views • No Comments

    To understand euro zone bailout plans, just think BBB. Bonds, Banks, Bailout The Bonds: If you own Greek debt, then you would be asked to accept a 50% haircut. That means you will get new Greek bonds worth half the old ones. The catch? It’s voluntary. A...  [read more]

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    Greece and Argentina

    Oct 25, 11 • 312 Views • No Comments

    Nobody wants Greece to become Argentina. It all began with what scholars Rogoff and Reinhart called the lending boom of the 1990s. Enjoying the influx of dollars, Argentina borrowed and grew and prospered…for awhile.  But when recession hit at the end...  [read more]

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    A Surprising Deficit Worry

    Oct 22, 11 • 227 Views • No Comments

    Who do you think is the biggest holder of U.S. government debt? The U.S. government. Whenever Social Security collects more payroll tax money than it needs, it buys U.S. securities. Retaining cash would mean no return, buying stock could be risky and,...  [read more]