Description

My guest today is Jake Meyer of California State University, Long Beach. We discuss Jake’s work on the intersection of financial crises and politics.

Jake’s work explores important questions such as the interaction between interest group politics and financial and currency crises. A country’s monetary authority needs to manage both the domestic labour market and the country’s exchange rate, but particular interest groups tend to favour one over the other very strongly. If one of these interest groups becomes disproportionately influential in national politics, they can affect monetary policy in ways that lead to crises. For instance, if a group that cares about the domestic economy and not the exchange rate takes power, they can push the monetary authority into causing an exchange rate crisis. If a group that cares exclusively about the exchange rate takes power, they can push the monetary authority to ignore the domestic economy to the point that it causes a banking crisis.

Jake’s work also looks at the way countries learn in the wake of financial crises. He looks at the change in the growth rate of credit before and after a crisis, and he finds that things like the number of veto players and the independence of the central bank impact this change.

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discussions

  • There are some ways in which buying a house can be a path to independent living.   On the other hand, we’re expecting currency devaluation and the housing market is propped up on limbo rates. Is it worth taking on debt to buy? Will inflation eat away at the principal, or would you have been better off in PMs?   Have you bought recently? What factored into your decision?

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  • Perhaps you will find this magnificent BBC documentary interesting. It tells the story of the ancient city of Caral, a little north of Lima on the coast of Peru, which is arguably the oldest city in and the beginning of civilization in the Americas. The Lost Pyramids Of Caral There are two points I would like to make about the story told therein of Caral which I think are relevant to libertarians. 1) The early civilization of Caral apparently arose purely out of commerce. This confirms the insights of the Austrian school of economics. And it may be an example of a commercially organized cooperative human society that antedates the rise of any state. 2) This contradicts the presumptions brought to the study by the archaeologists. For one example, at 7:20 one states the following. You can’t build … on the basis of consensus. You have to have leaders and followers. You have to have specialists. You have to have people who are in charge. People who can tell individual groups, alright, today you will be doing this. This group you are going to be doing something different. In other words, in his academic world, the possibility is inconceivable of that human cooperation could be organized by trade — the marketplace — rather than authority.

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  • On the Groups page, how do you filter or sort the list of groups? I can select to filter by a topic but there is no SUBMIT button, just a CREATE A GROUP button to the right. I’d just like to be able to see the groups in a particular category but can’t figure out how to do that. thanks.  

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  • History shows that control of the individual is achieved through the factors of production: labor, land, capital control through labor = slavery control through land = feudalism control through capital = the debt system Government is not necessary to control individuals through the factors of production. It is only necessary to own the factor of production. A study of history reveals multiple examples of this control. Are there any examples when this control of the individual through the factors of production has not existed?

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  • There’s a lot of controversy surrounding the NCAA and whether or not the players should get paid to play. Some critics of the current system say that they should get paid because of the time commitment required. Other critics are OK with them not getting paid but are against the practice of them not being able to receive gifts from recruiters and agents. I think it’s an interesting topic from the liberty perspective because some people might see this as free labor/servitude, which we know can be a controversial topic in a lot of political circles! What do you think about all of it?

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