22 Jan 2009

Tyler Cowen, a Sensible Central Planner

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I know, I know, I’m just beating up on the guy all the time because I have impossibly high standards for my libertarian economists. I suppose the following is actually a responsible plea to limit Big Government:

Here is my guest post on bank nationalization. I could have stressed further that bank nationalization works best in small countries with a small number of banks. The more banks a country has, the greater the danger that nationalizing a few of them will make the rest much harder to recapitalize, thereby leading to a kind of contagious need for nationalization.

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