A whirlwind tour through alternative theories would seem to suggest one fits much more comfortably with a pro-liberty worldview than another.
A liberal society is governed by the principles of private property and freedom of contract, under the aegis of a nondiscriminatory rule of law. In such a society, money enables […]
One feature of a liberal society is that its institutions, and especially its formal institutions with coercive backing, are bound by a nondiscriminatory rule of law, and work to protect […]
On the one hand, money is the language of commerce; money prices are the very medium of economic experience. On the other hand, there seems to be a deeper reality […]
My previous post was a crash course on the role of prices in a market economy. Importantly, prices are money prices. The vast majority of the time, producers accept the […]
A price is an exchange ratio: you must give up a certain amount of one good in order to get another good. Barter economies have prices, which are expressed as […]
A basic tenet of macroeconomics and monetary economics is the difference between nominal variables and real variables. Nominal variables are expressed in current market prices. Real variables are adjusted to […]
The American economy is still in the doldrums. It is growing and creating jobs at a snail’s pace compared to the years before the financial crisis. There are several reasons […]
When discussing the market for money balances, many reputable macroeconomics and money and banking textbooks say that the price of money is the interest rate. This ‘liquidity preference’ theory is […]
Many who are supportive of free markets blame central banks for the low interest rates that have prevailed since the end of the 2007-8 financial crisis. This is a mistake. […]