Are central banks independent of political influence? Do we want them to be independent of the government? Can central banks really be independent? Do democratic polities and central banking mix? Do we need central banks? Click here to listen to a short and fascinating podcast by Gerald P. O'Driscoll Jr. on the myth of central bank independence. Hat tip to Graham Brownlow.
My colleague and former PhD student Gareth Campbell has created a website about the British Railway Mania - click here . This episode has been described by the Economist as probably the greatest bubble in human history. Gareth's website provides background on the Mania and posits some explanations for the 'bubble'. In his explanation of why the bubble happened, Gareth places a lot of emphasis on investor myopia regarding future dividends and uncalled capital. His study of investors during the episode does not support the view that this episode was fuelled by naive and irrational investors.