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The Bancor is not going to "solve" the problem of liquidity runs or of cultural preference for The Shiny.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Fri Dec 30th, 2011 at 08:26:23 AM EST
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This particular liquidity run is about balance of trade, as is common in soft currency countries.

However, if bancor was operating under some international governance, it could well have been subject to the same international political pressures that led to the existing Iranian sanctions ... so it seems like it would be no guarantee against an international sanctions-driven liquidity run.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sat Dec 31st, 2011 at 02:52:03 PM EST
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