{"id":36109,"date":"2018-12-14T09:19:24","date_gmt":"2018-12-14T14:19:24","guid":{"rendered":"https:\/\/www.bu.edu\/pardeeschool\/?p=36109"},"modified":"2021-02-03T16:25:31","modified_gmt":"2021-02-03T21:25:31","slug":"mehrling-interviewed-on-global-currency-system","status":"publish","type":"post","link":"https:\/\/www.bu.edu\/pardeeschool\/2018\/12\/14\/mehrling-interviewed-on-global-currency-system\/","title":{"rendered":"Mehrling Interviewed on Global Currency System"},"content":{"rendered":"

\"\"<\/a><\/p>\n

Perry Mehrling<\/a>,\u00a0Professor of International Political Economy at the Frederick S. Pardee School of Global Studies at Boston University, was recently interviewed on the basics of the money view and its relationship with economics and finance as well as\u00a0the global currency system and challenges facing central banks.<\/span><\/p>\n

Mehrling was interviewed for a two-part article by the blog\u00a0Economania<\/a>\u00a0<\/em>published on December 12, 2018. You can read part one of the interview with Mehrling here<\/a>\u00a0and the second part of the interview here<\/a>.<\/p>\n

From the text of the article:<\/p>\n

At its most basic the money view emphasises two concepts. First, the so-called survival or settlement constraint, namely that in a payment system participants need to acquire cash for a point in time to honour their obligation to pay, and they may do this using credit \u2013 hence both the payment and the credit systems are of crucial importance. Second, the budget constraints of the intermediary \u2013 or dealer \u2013 determines the market price of credit, in both money and capital markets. In other words, the levels of inventory at dealers have a direct bearing on market prices. Dealers \u2013 and how they make money \u2013 play a central role in the model.<\/p>\n

Also, the money view tends to view the world in balance sheet terms: each entity, be it bank or individual for example, is thought of as a balance sheet \u2013 assets and corresponding liabilities.<\/p>\n

Market practitioners from banks and central banks (rather than theoretical macroeconomists) have long appreciated these points; nevertheless I see my contribution over the past two decades or so as largely twofold. I connected the dots and I systematised the points \u2013 with the latter essential for pedagogical purposes. It is therefore now possible for students to appreciate how the financial world works in practice without having to spend 5-10 years as a market practitioner.\u00a0 A further confirmation of the practical nature of the money view is that it \u2013 unlike typical macroeconomic models \u2013 does not make many assumptions.<\/p><\/blockquote>\n

Perry Mehrling<\/a>\u00a0is a Professor of International Political Economy at the Pardee School of Global Studies, Boston University, where he teaches courses on the economics of money and banking, the history of money and finance, and international money, the first of these is<\/span>\u00a0<\/span>available online.\u00a0<\/a>Perry is the author of\u00a0<\/span>The New Lombard Street: How the Fed became the dealer of last resort<\/u>\u00a0(Princeton 2011),<\/span>\u00a0<\/span>Fischer Black and the Revolutionary Idea of Finance<\/u>\u00a0<\/span>(Wiley 2005), and<\/span>\u00a0<\/span>The Money Interest and the Public Interest<\/u>\u00a0<\/span>(Harvard 1997).\u00a0 Recent papers and video are available on<\/span>\u00a0<\/span>his website<\/a>, \u201cone stop shopping for all things \u2018money view\u2019\u201d.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Prof. Perry Mehrling was recently interviewed on the basics of the money view and its relationship with economics and finance.<\/p>\n","protected":false},"author":11588,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[8410],"tags":[10745,11056,11057,8859,10588],"_links":{"self":[{"href":"https:\/\/www.bu.edu\/pardeeschool\/wp-json\/wp\/v2\/posts\/36109"}],"collection":[{"href":"https:\/\/www.bu.edu\/pardeeschool\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bu.edu\/pardeeschool\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/pardeeschool\/wp-json\/wp\/v2\/users\/11588"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/pardeeschool\/wp-json\/wp\/v2\/comments?post=36109"}],"version-history":[{"count":3,"href":"https:\/\/www.bu.edu\/pardeeschool\/wp-json\/wp\/v2\/posts\/36109\/revisions"}],"predecessor-version":[{"id":36112,"href":"https:\/\/www.bu.edu\/pardeeschool\/wp-json\/wp\/v2\/posts\/36109\/revisions\/36112"}],"wp:attachment":[{"href":"https:\/\/www.bu.edu\/pardeeschool\/wp-json\/wp\/v2\/media?parent=36109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bu.edu\/pardeeschool\/wp-json\/wp\/v2\/categories?post=36109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bu.edu\/pardeeschool\/wp-json\/wp\/v2\/tags?post=36109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}