Sloth: America\u27s Ironic Structural Vice

Individualism is a popular cultural trope in the United States, often touted for its promotion of industriousness and rejection of laziness. This essay argues that, ironically, America\u27s brand of individualism actually promotes a more fundamental form of the very vice it purports to oppose. To make this case, the essay defines the unique form of individualism in the United States and then retrieves the classical definition of sloth as a vice against charity (not diligence), contrasting Aquinas and Barth with Weber to demonstrate that this peculiarly American individualist impulse undermines civic charity by reaping the benefits of civic relationships while denying any concomitant responsibilities. Identifying this narrative of individualism as a structural vice, the essay proposes structural remedies for reinvigorating civic charity, solidarity, and the common good in the United States

Does Inequality Lead to a Financial Crisis?

The recent global crisis has sparked interest in the relationship between income inequality, credit booms, and financial crises. Rajan (2010) and Kumhof and Rancière (2011) propose that rising inequality led to a credit boom and eventually to a financial crisis in the US in the first decade of the 21st century as it did in the 1920s. Data from 14 advanced countries between 1920 and 2000 suggest these are not general relationships. Credit booms heighten the probability of a banking crisis, but we find no evidence that a rise in top income shares leads to credit booms. Instead, low interest rates and economic expansions are the only two robust determinants of credit booms in our data set. Anecdotal evidence from US experience in the 1920s and in the years up to 2007 and from other countries does not support the inequality, credit, crisis nexus. Rather, it points back to a familiar boom-bust pattern of declines in interest rates, strong growth, rising credit, asset price booms and crises.

Athletes' perceptions of coaching effectiveness and athlete-related outcomes in rugby union: An investigation based on the coaching efficacy model

This study examined the relationships between athletes' perceptions of coaching effectiveness, based on the coaching efficacy model, and their effort, commitment, enjoyment, self-efficacy, and prosocial and antisocial behavior in rugby union. Participants were 166 adult male rugby-union players (M age = 26.5, SD = 8.5 years), who completed questionnaires measuring their perceptions of four dimensions of coaching effectiveness as well as their effort, commitment, enjoyment, self-efficacy, and prosocial and antisocial behavior. Regression analyses, controlling for rugby experience, revealed that athletes' perceptions of motivation effectiveness predicted effort, commitment, and enjoyment. Further, perceptions of technique effectiveness predicted self-efficacy, while perceptions of character-building effectiveness predicted prosocial behavior. None of the perceived coaching effectiveness dimensions were related to antisocial behavior. In conclusion, athletes' evaluations of their coach's ability to motivate, provide instruction, and instill an attitude of fair play in his athletes have important implications for the variables measured in this study

The Role of Foreign Currency Debt in Financial Crises: 1880-1913 vs. 1972-1997

What is the role of foreign currency debt in precipitating financial crises? In this paper we compare the 1880 to 1913 period to recent experience. We examine debt crises, currency crises, banking crises and the interrelation between these varieties of crises. We pay special attention to the role of hard currency debt, currency mismatches and debt intolerance. We find fairly robust evidence that high exposure to foreign currency debt does not necessarily lead to a high chance of having a debt crisis, currency crisis, or a banking crisis. A key finding is some countries do not suffer from great financial fragility despite high exposure to original sin. In the nineteenth century, the British offshoots and Scandinavia generally avoided severe financial meltdowns while today many advanced countries have high original sin but have had few financial crises. The common denominator in both periods is that currency mismatches matter. A strong reserve position or high exports relative to hard currency liabilities helps decrease the likelihood of a debt crisis, currency crisis or a banking crisis. This strengthens the evidence for the hypothesis that foreign currency debt is dangerous when mis-managed. We discuss the robustness of these results and make some general comparisons based on this evidence from over 60 years of intense international capital market integration.

Currency Mismatches, Default Risk, and Exchange Rate Depreciation: Evidence from the End of Bimetallism

It is generally very difficult to measure the effects of a currency depreciation on a country%u2019s balance sheet and financing costs given the endogenous properties of the exchange rate. History provides at least one natural experiment to test whether an exogenous exchange rate depreciation can be contractionary (via an increased real debt burden) or expansionary (via an improved current account). France%u2019s decision to suspend the free coinage of silver in 1876 played a paramount role in causing a large exogenous depreciation of the nominal exchange rates of all silver standard countries versus gold-backed currencies such as the British pound%u2014the currency in which much of their debt was payable. Our identifying assumption is that France%u2019s decision to end bimetallism was exogenous from the viewpoint of countries on the silver standard. To deal with heterogeneity we implement a difference in differences estimator. Sovereign yield spreads for countries on the silver standard increased in proportion to the potential currency mismatch. Yield spreads for silver countries increased ten to fifteen percent in the wake of the depreciation. Basic growth models suggest that the accompanying reduction in investment could have decreased output per capita by between one and four percent relative to the pre-shock trajectory. This also illustrates that a substantial proportion of the decrease in spreads gold standard countries identified in the %u201CGood Housekeeping%u201D literature could be attributable to the increase in exchange rate stability. Finally, if emerging markets are going to embrace international capital flows, the most export oriented countries will manage to mitigate the negative effects of a currency mismatch.

Currency Mismatches, Default Risk, and Exchange Rate Depreciation: Evidence from the End of Bimetallism

It is generally very difficult to measure the effects of a currency depreciation on a country’s balance sheet and financing costs given the endogenous properties of the exchange rate. History provides at least one natural experiment to test whether an exogenous exchange rate depreciation can be contractionary (via an increased real debt burden) or expansionary (via an improved current account). France’s decision to suspend the free coinage of silver in 1876 played a paramount role in causing a large exogenous depreciation of the nominal exchange rates of all silver standard countries versus gold-backed currencies such as the British pound—the currency in which much of their debt was payable. Our identifying assumption is that France’s decision to end bimetallism was exogenous from the viewpoint of countries on the silver standard. To deal with heterogeneity we implement a difference in differences estimator. Sovereign yield spreads for countries on the silver standard increased in proportion to the potential currency mismatch. Yield spreads for silver countries increased ten to fifteen percent in the wake of the depreciation. Basic growth models suggest that the accompanying reduction in investment could have decreased output per capita by between one and four percent relative to the pre-shock trajectory. This also illustrates that a substantial proportion of the decrease in spreads gold standard countries identified in the “Good Housekeeping” literature could be attributable to the increase in exchange rate stability. Finally, if emerging markets are going to embrace international capital flows, the most export oriented countries will manage to mitigate the negative effects of a currency mismatch.