Archive for July 15th, 2013

Law and Finance: What Matters? Hong Kong as a Test Case

July 15, 2013

Nice paper by Horace W.H. Yeung  (School of Law, University of Leicester) and Flora Xiao Huang (University of Hull – Law School).

LaPorta et al started this debate showing how legal systems matter to financial development. They showed countries with Common law (Anglo Saxon) were better at securing property rights than Civil law countries. As property rights are crucial for financial development, countries with common law (or those that inherited from their colonial masters) had better developed financial systems particularly market based systems. Others have contested this view on several grounds.

The authors test this hypothesis on HongKong and find it to be a mixed bag:



How to design a new Central Bank?

July 15, 2013

Ricardo Reis of Columbia explores the issue in the NBER conference on 100 Years of Fed.

He begins asking the q what is one had to design a new Fed:


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