Natures Capacities and Their Measurement or Checking on Banks

Nature's Capacities and Their Measurement

Author: Nancy Cartwright

Ever since David Hume, empiricists have barred powers and capacities from nature. In this book Cartwright argues that capacities are essential in our scientific world, and, contrary to empiricist orthodoxy, that they can meet sufficiently strict demands for testability. Econometrics is one discipline where probabilities are used to measure causal capacities, and the technology of modern physics provides several examples of testing capacities (such as lasers). Cartwright concludes by applying the lessons of the book about capacities and probabilities to the explanation of the role of causality in quantum mechanics.

New interesting book: Fete Accompli or Jon and Jaynes Guide to Throwing Going to and Surviving Parties

Checking on Banks: Autonomy and Accountability in Three Federal Agencies

Author: Anne M Khademian

Anne Khademian argues that downsizing government activities through consolidation does not guarantee better performance. Consolidation implies agreement on the best way to perform a task, but each of the three banking agencies has a unique management style and level of autonomy growing out of its history and politics. For example, the Fed has a high level of expertise and autonomy, the OCC is known for innovation, and the FDIC places priority on examiner training. Khademian maintains that the jurisdictional overlap among the agencies reflects an essential tension between accountability and autonomy. And a new consolidated agency would destroy that tension. Khademian contends that in the rush to consolidate, we might destroy administrative systems that have real benefits or provide important lessons about implementing government programs and risk creating new "super agencies" whose systems of accountability and operational autonomy are at odds with expectations for performance. Before we can improve government performance, we need to know why agencies behave the way they do. This book offers a framework for understanding agency behavior. In the case of banking, Khademian argues that the diverse approaches to supervision provide an important balance in the system that has worked to keep U.S. banks among the safest and strongest in the world.

Booknews

Uses the tools of modern time series analysis to determine the role of an aggregate demand for real balances in the generation of macroeconomic time series. Undertakes the identification and estimation of the demand function in a multivariate, rather than the usual single-equation, framework. Discusses the development and failures of the empirical literature; identification, estimation, and inference; a framework for structural and dynamic analysis; a prototype economic model characterized by co- integration; three-variable and higher dimensional VECM models; and combining term structure and Fisher effects. Annotation c. Book News, Inc., Portland, OR (booknews.com)