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The author Frances Coppola
Frances Coppola
I’m Frances Coppola, writer, singer and twitterer extraordinaire. I am politically non-aligned and economically neutral (I do not regard myself as “belonging” to any particular school of economics). I do not give investment advice and I have no investments.Coppola Comment is my main blog. I am also the author of the Singing is Easy blog, where I write about singing, teaching and muscial expression, and Still Life With Paradox, which contains personal reflections on life, faith and morality.

Francis Coppola

Maya Forstater’s human rights problem

Maya Forstater's Employment Tribunal hearing comes up soon. This is her second hearing: the judge in the first hearing dismissed her case with a controversial judgment that described her "gender critical" beliefs as "not worthy of respect in a democratic society". She appealed this judgment, and in June this year the Employment Appeals Tribunal (EAT) found that the judge had erred in law and her beliefs were protected under section 10 of the Equality Act. The EAT instructed that a second...

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JP Morgan’s Coffee Machine

It's now widely accepted, though still not universally, that banks create money when they lend. But it seems to be much less widely known that they also create money when they spend. I don't just mean when they buy securities, which is rightly regarded as simply another form of lending. I mean when they buy what is now colloquially known as "stuff". Computers, for example. Or coffee machines. Imagine that a major bank - JP Morgan, for example - wants to buy a new coffee machine for one of...

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Crypto’s Weimar

A cryptocurrency has just re-enacted the Weimar hyperinflation.Yesterday, the price of the cryptocurrency TITAN crashed to zero, and its related stablecoin IRON fell off its USD peg, trading as low as 69 cents to the dollar. It was a sudden and dramatic collapse that left investors shocked and bewildered. Equally shocked and confused, the coins' issuer launched an immediate investigation: Iron Finance issued its post mortem a few hours later. This is the key paragraph:Later, at around 3pm...

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Bank capital and cryptocurrencies

The BIS's draft proposals for capital regulation of stablecoins and cryptocurrencies have just been released. The headline proposal was a risk weighting of 1250% for what the BIS called "Group 2 cryptoassets", which includes all cryptocurrencies, all algorithmic stablecoins, and reserved stablecoins  that don't meet the capital, liquidity and disclosure requirements for "Group 1 cryptoassets" specified in the same document. Bitcoin and Ethereum, the two major cryptocurrencies, would fall...

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USDT Everything You Need to Know about Tether with Frances Coppola

USDT Tether have to report assets to the New York Attorney General today. We chat to former banker, economist, author and all around lovely lady, Frances Coppola( @frances_coppola ) about the issues surrounding Tethers asset portfolio and what the wider implications of the Crypto markets reliance on USDT and how a run on Tether would play out. Teter Teher USTD UTSD $USDT 0:00 Intro 0:33 Brief History 1:09 How USTD was meant to be 3:41 Issue with reserves 13:24 The role of exchanges 16:31...

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Tether’s smoke and mirrors

Tether has issued what it calls a “breakdown of its reserves”. It actually consists of two pie charts. Here they are:Seriously, this is all Tether has seen fit to reveal.  Furthermore, the pie charts only purport to show the breakdown of Tether’s reserves on the 31st March 2021. We do not know whether Tether’s reserves still have the same composition now. Nonetheless, the crypto world took these charts as an indication that Tether was, if not fully cash-backed, at least mostly. “76% of its...

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Calculus for Economists

Gabriel Sterne complains about economists' loose use of mathematical terminology: Of course, it's not just economists who use "increase" and "accelerate" interchangeably. But economics is a mathematical discipline, and in mathematics, "increase" and "accelerate" mean different things. So is Gabriel's observation true, and if it is, is it a problem?To test Gabriel's hypothesis, I ran a little Twitter test. I asked this question: This was of course far from rigorous: the sample was...

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