Eugene Fama was recently interviewed by Luigi Zingales and Bethany McLean . Many have criticized his prediction of a zero price for Bitcoin. In this thread, I criticize his claim that zero-valued BTC follows from standard monetary theory. It doesn't.chicagobooth.edu/review/capital… Fama tells his interviewers: “All we know about monetary theory says [cryptocurrency] shouldn’t survive. … They have highly variable real value. That kind of a medium of exchange is not supposed to survive. People don’t want to do business in something [like that]." Yes and no.

Paul Krugman is not a historian of economic thought; he only role-plays one in his NYT opinion column. He has never understood the Austrian / Hayekian theory of the business cycle, so he thinks that it couldn't have been a serious rival to Keynes’s theory in the 1930s. But
/1 JR Hicks was there, and wrote in his 1967 essay “The Hayek Story”:
/2

Thread: The Gorton and Zhang working paper on “Wildcat Stablecoins” offers a take on modern stablecoins, banking, and mutual funds that is no less ex parte than its view of 19th century free banking. 1/10 papers.ssrn.com/sol3/papers.cf… GZ worry that, left alone, “stablecoin issuers will become the money market funds of the 21st century—too big to fail.” Money-market mutual funds are not inherently failure-prone, however, when promptly marked to market. 2/10