Monthly Archives: March 2013

Cyprus banking crisis illustrates key ingredients missing from modern finance theory

The Cypriot banking system, long waiting to collapse from financial exhaustion, finally succumbed over the weekend. The deal that was initially struck (since rejected by the country‚Äôs Parliament under popular outcry, though they will have to strike a deal of some kind soon) was widely seen as inequitable[1], because retail depositors (people like you and […]

Still asking the wrong question

Tonight at Cass Business School in London, Prof Franklin Allen from Wharton will be speaking on “Is Finance a Force for Progress“. Now it’s good to be talking about these matters in the Universities. But when are we going to start asking the right questions? As I argued in an earlier post, the catch-all ‘finance’ […]