Some Monday Links

Challenges to monetary policy: lessons from Medieval Europe (Bank Underground)

Explores some monetary issues I briefly touched here.

Sadly, appreciations all over:

Anthony Downs, RIP (Volokh Conspiracy)

János Kornai, 1928-2021 (VOXEU)

Fred Foldvary, a Joyous Friend (Econlib)

Downs: Economic Theory of Democracy and Kornai: Soft-Budget Constraint, both staples of liberal economic tradition. NOL tribute to Foldvary (shorter, but more timely), by Brandon, here.

Globalisation has ruined Hollywood (UnHerd)

I would add The Lord of the Rings (2001-2003), as a cause-and-effect-too element in the trend.

“Could we build a bridge between Austrian Economics and New Institutional Economics? – A Pre-History of Soft Budget Constraint”

This is the title of a paper by Claudio Shikida. Here’s the abstract:

The concept of soft budget constraint is recent in economic analysis. It has become increasingly important in economic theory, for its role as a system of incentives. However, soft budget constraint plays also an important role in the history of economic thought, where it can be traced back until Mises’s writings on economic calculation and property rights, both derived from the debate of the economic calculation in socialist regimes. In this sense, soft budget constraint can be viewed as a bridge between Austrian Economics and New Institutional Economics. Since Mises, like other Austrian economists, is virtually ignored in Brazilian courses of Economic Thought, this article intends to show his importance as a forerunner of the concept of soft budget constraint, and will try to link these two theoretical views of economic systems.

You can read the whole thing here. Any thoughts?