Economic Theory
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Foundations of Economics: It All Starts With Cooperation
It is by understanding the nature of cooperation that one can see how the evolution of all the other foundations of economics, and even the free market economy itself, was driven by the societal benefits from ever more effective cooperation.
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Lessons from the Phillips Curve
“The exploration of the Phillips Curve has taken many different paths and yet somehow ended up in the same place. The world could have been spared much of this meandering with a more firm grounding in what theory does and does not tell us.” ~ Joshua R. Hendrickson
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Monetarism Remains a Useful Guide on Inflation
“If the Federal Reserve raises interest rates too quickly, sharply declining M2 growth will signal the risk of recession. Monitoring M2 growth can help in making sure the Fed tightens monetary policy at the appropriate pace, not too fast and not too slow.” ~ Peter N. Ireland
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Inflation and Relative Prices
“Although inflation is often classified as a macroeconomic topic, it is clear that a firm understanding of price theory is necessary to work out all of the costs associated with inflation.” ~ Joshua R. Hendrickson
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Should the Fed Devalue Our Currency to Implement Negative Interest Rates?
“Where Agarwal and Kimball comment that the zero lower bound ‘is not a law of nature, but a policy choice,’ I suggest that the same is true about the need to fight an excess demand for money by cutting an interest rate instrument or target.” ~ Lawrence H. White
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Galbraith Offers a Poor Defense of MMT
“The rise of MMT on the political left will no doubt continue. It is politically expedient. It provides a justification for spending. Political expediency does not imply theoretical soundness, however. And defenses along the lines offered by Galbraith do little to assuage very real concerns.” ~ Nicolás Cachanosky
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Smart Society, Stupid People
“If economies come to be restored, eventually, to their former selves, it will not be because we or our leaders somehow beat a virus. The virus outsmarted everyone. What will fix what the political class has broken is the freedom once again to piece back together the institutions and processes that create the extended order…
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The Creation of a Surveillance-and-Snitching Society
We muddy the message when we don’t let prices change, and we tear the ties that bind us together when we create a snitching society.
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Krugman’s Zombie Idea: We Owe It to Ourselves
Paul Krugman claims that the national debt doesn’t matter because “we owe it to ourselves.” This “zombie idea” is dead wrong.
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A Theory of Action: Pragmatism and the Creativity of Action
Behavioral Research Council Transactional Viewpoints, Vol. I, No. 4, 2002, Fall Quarterly Letters on the Transactional View, the Sciences and the Arts
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Should Lawmaking Be Against the Law?
The short answer is “yes,” with a “but”; the long answer is “no,” with an “if.” For a market to work and grow, certain rules should prevail and be protected, […]
