Nobel laureate Paul Krugman compared stablecoins to crisis-prone free banking
Nobel laureate in economics, famous economist and geographer, and member of the American Philosophical Society, Paul Krugman, expressed his latest opinion on stablecoins. He did so on his official Twitter page.
This, by Gorton and Zhang, is very good: stablecoins are just a modern version of free banking, in which private banks issued their own notes supposedly backed by specie. That system was crisis-ridden, and the same will be true no https://t.co/KQynhZfgVK
— Paul Krugman (@paulkrugman) July 18, 2021
A modern version of free banking
Thus, Dr. Krugman praised the joint scientific work of economists Gary Gorton and Jeffrey Zang, entitled “Taming Wildcat Stablecoins,” expressing his full agreement with what was written there.
Then he continued his thoughts by comparing stablecoins to banks. Dr. Krugman noted that stablecoins are just a modern…