Economics Commons^™

Restructuring And Forgiveness In Financial Crises A: The Mexican Peso Crisis Of 1994-95, Christian M. Mcnamara, June Rhee, Andrew Metrick

Journal of Financial Crises

Following a year in which repeated political turmoil sapped investor confidence in Mexico, putting pressure on the peso and draining the country’s foreign exchange reserves, on December 22, 1994, the Mexican government sparked a financial crisis by unexpectedly abandoning its policy of anchoring the peso to the US dollar and instead allowing it to float freely. The resulting collapse of the peso left Mexico with $40 billion to $50 billion in external debt (much of it dollar-indexed) coming due in the near term and almost no foreign exchange reserves. Faced with the prospect that Mexico would either default on its …

Guarantees And Capital Infusions In Response To Financial Crises B: U.S. Guarantees During The Global Financial Crisis, June Rhee, Andrew Metrick

Journal of Financial Crises

During 2008-09, the federal government extended multiple guarantee programs in an effort to restore the financial market and contain the panic and crisis in the market. For example, the Treasury provided a temporary guarantee program for the money market funds, the FDIC decided to stand behind certain debts and non-interest-bearing transaction accounts, and the Treasury, the FDIC, and the Federal Reserve agreed to share losses in certain assets belonging to Citigroup. This case reviews these guarantee programs implemented during the global financial crisis by the government and explores the different rationale that shaped certain design features of each program.

Income Inequality, Progressive Taxation And Tax Expenditures, James R. Hines Jr.

Book Chapters

There are important and growing concerns about income inequality in the United States and other high-income countries. These concerns reflect rising apprehension about the political and social consequences of inequality and worries that the advance of technology, expanding international trade and investment, and other economic developments may have significantly widened income gaps in recent decades and will continue to do so in the future. In the United States, these concerns have prompted renewed calls for political activism and vigorous searches for policy measures that might improve the relative economic positions of low- and middle-income Americans.

There are many ways in …

Australian National Audit Office: Evaluating Australian Army Program Performance, Bert Chapman

Libraries Faculty and Staff Scholarship and Research

The Australian National Audit Office (ANAO) evaluates the management and financial performance of Australian government programs for the Australian Parliament, Australian government agencies, Australian taxpayers, and individuals interested in the performance of these programs globally. This article examines how ANAO has examined the performance of Australian Army programs and strengths and weaknesses found in these programs while recommending changes to improve program performance. It also examines how government agencies and corporations which have been the subject of ANAO analyses have reacted to ANAO findings. This assessment also examines how Plan B (the possibility that Australia might have to rely less …

What Went Wrong With Economics?: Milton Friedman, Alexander Meiklejon, And The Reorientation Of Freedom, Aria Mia Loberti

Senior Honors Projects

Economics went wrong in the midst of the Cold War, specifically the time of the terror of communism in the 1950s. It went wrong in Chicago economics in particular—exacerbated by a reorientation in how to understand and conceptualize freedom. Milton Friedman’s Capitalism and Freedom trumpets the virtues of economic freedom, or the freedom of choice within the competitive market. It represents the Chicago neoliberal position. In contrast, the luminary Alexander Meiklejohn advocates a radically different conception of freedom, and his ideas echo the voices pre-1950 Chicago economics. Meiklejohn promotes political freedom over economic freedom: championing absolute protection for free speech, …

The Right To Housing In Spain: Community Action And Alternative Housing Models, Georgia Sparks

Independent Study Project (ISP) Collection

The right to housing is guaranteed by Spain's constitution, the principles of the European Union, and U.N. human rights treaties to which Spain is signatory, yet Spain scarcely provides affordable housing and leaves its citizens struggling with poverty and unable to find a place to live. Unlike much of the rest of Europe, Spain’s social rented sector represents less than 1% of its total housing stock. Through policies that favor homeownership, promote the real estate market, and privatize social housing, Spain has left its citizens reliant on the private market for their fundamental need for housing. Social movements and nonprofit …

Room To Grow: A Comparative Analysis Of Cannabis Regulation Models In Europe, Amanda H. Cronin

Independent Study Project (ISP) Collection

Debilitated by years of economic instability, the Spanish economy has not fully rebounded to its once strong place in the European market. And now, in the aftermath of a devastating pandemic, the nation will be searching for new sources of wealth. The lucrative market potential of controlled cannabis in medicinal and recreational settings is an attractive industry gaining popularity across Europe. This paper explores the various policy models and legal systems in Portugal, Germany, and the Netherlands. Combining a variety of sources, I seek to ascertain the best plan for Spain. Ultimately, analysis shows that a multi-pronged approach is the …

Racialized Tax Inequity: Wealth, Racism, And The U.S. System Of Taxation, Palma Joy Strand, Nicholas A. Mirkay

Northwestern Journal of Law & Social Policy

This Article describes the connection between wealth inequality and the increasing structural racism in the U.S. tax system since the 1980s. A long-term sociological view (the why) reveals the historical racialization of wealth and a shift in the tax system overall beginning around 1980 to protect and exacerbate wealth inequality, which has been fueled by racial animus and anxiety. A critical tax view (the how) highlights a shift over the same time period at both federal and state levels from taxes on wealth, to taxes on income, and then to taxes on consumption—from greater to less progressivity. Both of these …

Debt Bondage: How Private Collection Agencies Keep The Formerly Incarcerated Tethered To The Criminal Justice System, Bryan L. Adamson

Northwestern Journal of Law & Social Policy

This Article examines the constitutionality of statutes which allow courts to transfer outstanding legal financial obligations to private debt collection agencies. In Washington State, the clerk of courts can transfer the legal financial obligation of a formerly incarcerated person if he or she is only thirty days late making a payment. Upon transfer, the debt collection agencies can assess a “collection fee” of up to 50% of the first $100.000 of the unpaid legal financial obligation, and up to 35% of the unpaid debt over $100,000. This fee becomes part of the LFO debt imposed at sentencing, and like that …

The Ncaa's Breaking Point For Equal Opportunity: A Title Ix Perspective On Name, Image, And Likeness Sponsorship Legislation, Joshua C. Sorbe

Honors Thesis

This paper analyzes the efficacy of Title IX when considering national name, image, and likeness (NIL) legislation and NCAA Division I athletic department expenditure behavior. To answer this question, I analyzed Title IX’s legislative history, current compliance rules, recent litigation, and academic literature. Using publicly-available data reported to the US Department of Education, I performed regression analysis on institutional characteristics and expenditure behaviors to assess the impact that spending behavior has on gender equity. My results show that revenue-generating sports had a large impact on spending equity, and disparities in expenditures are more distinct than participation. Ultimately, the market-based exceptions …

Variability In U.S. Labor Markets: A Presentation To The Workers’ Compensation Research Institute, Michael Horrigan

Presentations

No abstract provided.

The (Unfilled) Fintech Potential, Aluma Zernik

Notre Dame Journal on Emerging Technologies

Part I explores the idea that technology has the utopian potential to significantly improve the way individuals make financial decisions. Part II discusses some existing market failures, while presenting the potential of technological innovation in resolving such failures. Part III presents the realized potential of such innovative products, analyzing the design of credit card comparison websites, financial management tools, and mobile wallets. I will demonstrate the significant benefits of such products, and yet the limited realization of the potential advantages of such services. Part IV presents several explanations for why such potential is not being fully realized. These explanations may …

Chain Restaurant Calorie Posting Laws, Obesity, And Consumer Welfare, Charles J. Courtemanche, David Frisvold, David Jimenez-Gomez, Mariétou H. Ouayogodé, Michael Price

Institute for the Study of Free Enterprise Working Papers

The 2010 Patient Protection and Affordable Care Act (ACA) introduced a mandate requiring chain restaurants to post calorie counts on menus and menu boards. This paper investigates whether and why calorie posting laws work. To do so, we develop a model of calories consumed that highlights two potential channels through which mandates influence choice and outlines an empirical strategy to disentangle these alternatives. We test the predictions of our model using data from the Behavioral Risk Factor Surveillance System to compare changes in body mass index (BMI), obesity, and consumer well-being in locations that implemented calorie-posting laws between 2008 and …

The Constitution And The Tennô – A Trial, Ernst Lokowandt

Japanese Society and Culture

For some time now, I have been thinking about the role of the Tennô versus the Constitution. The religious activities of the Tennô, be it the places of ceremonies, the succession ceremonies, or the yearly ceremonies, are according to most of the constitutional scholars, against the constitution. The present day chaos was made by the GHQ, who at the same time as arranging for the separation of religion and state they also held fast to the Emperor, in order to minimize the number of occupation soldiers and to institute the indirect occupation of Japan. The Emperor fell in between these …

Basel Iii G: Shadow Banking And Project Finance, Christian M. Mcnamara, Andrew Metrick

Journal of Financial Crises

The Net Stable Funding Ratio (NSFR), a liquidity standard introduced by Basel III, seeks to promote a better match between the liquidity of a bank’s assets and the manner in which the bank funds those assets. The NSFR requires banks to maintain a minimum amount of funding deemed “stable” by the Basel framework based on the liquidity of the banks’ assets and activities over a one-year timeframe. One of the areas seen as most affected by this development may be bank participation in project finance for infrastructure development. Since the global demand for infrastructure development remains robust, the shadow banking …

Basel Iii F: Callable Commercial Paper, Christian M. Mcnamara, Rosalind Bennett, Andrew Metrick

Journal of Financial Crises

One of the Basel Committee on Banking Supervision’s responses to the global financial crisis of 2007-09 was to introduce the Liquidity Coverage Ratio (LCR), a short-term measure that evaluates whether a bank has enough liquidity to meet expected cash outflows during a 30-day stress scenario. One area in which this incentive has already resulted in changed practices is in the market for commercial paper. Banks often provide backup liquidity facilities to the issuers of commercial paper that the issuers can draw upon to repay a maturing issue of commercial paper if they are unable to sell a new issue to …

Basel Iii D: Swiss Finish To Basel Iii, Christian M. Mcnamara, Natalia Tente, Andrew Metrick

Journal of Financial Crises

After the Basel Committee on Banking Supervision (BCBS) introduced the Basel III framework in 2010, individual countries confronted the question of how best to implement the framework given their unique circumstances. Switzerland, with a banking industry that is both heavily concentrated and very large relative to the size of its overall economy, faced a special challenge. It ultimately adopted what is sometimes referred to as the “Swiss Finish” to Basel III—enhanced requirements applicable to Switzerland’s “too-big-to-fail” banks Credit Suisse and UBS that go beyond the base requirements established by the BCBS. Yet the prominent role played by relatively new contingent …

Basel Iii B: Basel Iii Overview, Christian M. Mcnamara, Michael Wedow, Andrew Metrick

Journal of Financial Crises

In the wake of the financial crisis of 2007-09, the Basel Committee on Banking Supervision (BCBS) faced the critical task of diagnosing what went wrong and then updating regulatory standards aimed at preventing it from occurring again. In seeking to strengthen the microprudential regulation associated with the earlier Basel Accords while also adding a macroprudential overlay, Basel III consists of proposals in three main areas intended to address 1) capital reform, 2) liquidity standards, and 3) systemic risk and interconnectedness. This case considers the causes of the 2007-09 financial crisis and what they suggest about weaknesses in the Basel regime …

Basel Iii A: Regulatory History, Christian M. Mcnamara, Thomas Piontek, Andrew Metrick

Journal of Financial Crises

From the earliest efforts to mandate the amount of capital banks must maintain, regulators have grappled with how best to accomplish this task. Until the 1980s, regulation had been based largely on discretion and judgment. In the wake of two bank failures, the central bank governors of the G10 countries established the Basel Committee on Banking Supervision (BCBS) and in 1988, the BCBS introduced a capital measurement system, Basel I. The system represented a triumph of the fixed numerical approach, however, critics worried that it was too blunt an instrument. In 1999, the BCBS issued Basel II, a proposal to …

Jpmorgan Chase London Whale Z: Background & Overview, Arwin G. Zeissler, Rosalind Bennett, Andrew Metrick

Journal of Financial Crises

In December 2011, the Chief Executive Officer and Chief Financial Officer of JPMorgan Chase (JPM) instructed the bank’s Chief Investment Office to reduce the size of its Synthetic Credit Portfolio (SCP) during 2012, so that JPM could decrease its Risk-Weighted Assets as the bank prepared to adopt the impending Basel III bank capital regulations. However, the SCP traders were also told to minimize the trading costs incurred to reduce Risk-Weighted Assets, while still maintaining the opportunity to profit from unexpected corporate bankruptcies. In an attempt to balance these competing objectives, head SCP derivatives trader Bruno Iksil suggested in January 2012 …

Incorporating Macroprudential Financial Regulation Into Monetary Policy, Aaron Klein

Journal of Financial Crises

This paper proposes two insights into financial regulation and monetary policy. The first enhances understanding the relationship between them, building on the automobile metaphor that describes monetary policy: when to accelerate or brake for curves miles ahead. Enhancing the metaphor, financial markets are the transmission. In a financial crisis, markets cease to function, equivalent to a transmission shifting into neutral. This explains both monetary policy’s diminished effectiveness in stimulating the economy and why the financial crisis shock to real economic output greatly exceeded central bank forecasts.

The second insight is that both excess leverage and fundamental mispricing of asset values …

An Economic Analysis Of Cyber Warfare Governance Models, Kevin M. Kelleher

Electronic Theses and Dissertations

Allusions to death delivered by bits and bytes have been in vogue since the Reagan administration. Yet, as the internet and its connected devices have since proliferated, cyber violence remains far more fiction than fact. Nevertheless, prominent U.S. officials have all but assured the eventuality of a devastating attack. In anticipation, political, legal, and industry experts are now seeking to codify and inculcate international norms to govern acts of war prosecuted via cyberspace. Two of the most prominent governance models to emerge are the Tallinn Manual and Microsoft’s Digital Geneva Convention. The driving thesis of this research argues that within …

Antitrust In Times Of Information Technology: An Analysis Of Big Tech Monopoly Cases, Shamayeta Rahman

Electronic Theses and Dissertations

The information technology industry is one of the most rapidly growing yet concentrated markets existing today. Big Tech monopolies and their increasingly anticompetitive behavior posits risks for competition, technological innovation and consumer welfare. This ranges from price discrimination, limiting consumer choices to the unethical use of data. The particular nature of information technology, with its network effects and negligible marginal costs, incentivizes and facilitates predatory market practices making antitrust analysis in this industry extremely complex. Certain schools of antitrust thought are more sensitive (namely the post-Chicago school) to these implications than others, though antitrust application is still lacking in both …

A Class Action Lawsuit For The Right To A Minimum Education In Detroit, Carter G. Phillips

Northwestern Journal of Law & Social Policy

No abstract provided.

The Pursuit Of Comprehensive Education Funding Reform Via Litigation, Lisa Scruggs

Northwestern Journal of Law & Social Policy

No abstract provided.

Panel Discussion: The Right To Education: With Liberty, Justice, And Education For All?

Northwestern Journal of Law & Social Policy

No abstract provided.

Economic Analysis Of Jewish Law, Keith Sharfman

Touro Law Review

No abstract provided.

Abandoning Copyright, David Fagundes, Aaron Perzanowski

Faculty Articles

For nearly two hundred years, U.S. copyright law has assumed that owners may voluntarily abandon their rights in a work. But scholars have largely ignored copyright abandonment, and case law on the subject is fragmented and inconsistent. As a result, abandonment remains poorly theorized, owners can avail themselves of no reliable mechanism to abandon their works, and the practice remains rare. This Article seeks to bring copyright abandonment out of the shadows, showing that it is a doctrine rich in conceptual, normative, and practical significance. Unlike abandonment of real and chattel property, which imposes significant public costs in exchange for …

The Wealth Tax: Apportionment, Federalism, And Constitutionality, Alex Zhang

Faculty Articles

Proposals of wealth taxation as a mechanism to combat economic inequality and raise revenue for welfare programs have dominated recent political debate. Despite extensive academic commentary, questions surrounding the constitutionality of a wealth tax remain unresolved. Previous scholarly approaches have drawn a dichotomy between two key cases. Supporters of the wealth tax emphasize Hylton's functional rule for identifying direct taxes, which must be apportioned under the Constitution, and reject Pollock, which invalidated the federal income tax on the grounds that it was a direct tax. Opponents of the wealth tax, in contrast, argue that Pollock, rather than …

Essentializing Labor Before, During, And After The Coronavirus Pandemic, Deepa Das Acevedo

Faculty Articles

In the era of COVID-19, the term essential labor has become part of our daily lexicon. Between March and May 2020, essential labor was not just the only kind of paid labor occurring across most of the United States; it was also, many argued, the only thing preventing utter economic and humanitarian collapse. As a result of this sudden significance, legal scholars, workers’ advocates, and politicians have scrambled to articulate exactly what makes essential labor “essential.” Some commentators have also argued that the rise of essential labor as a conceptual category disrupts—or should disrupt—longstanding patterns in the way the nation …