History
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“The Lag in Effect of Monetary Policy”
“First, discretionary policy at times tends to be dominated by goals other than, and even contradictory to, stabilization (for example, pegging bonds yields, halting gold outflows), whereas the automatic framework cannot be so readily exploited for other purposes. Second, the inertia and the political considerations referred to above that inhibit the ready reversal of discretionary…
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Here Today, Keynes Tomorrow
“Keynesian ideas seem to pop up time and time again, especially in times of crisis. Keynes himself even sensed the impact his theories were going to have. When Keynes was writing the General Theory he wrote to George Bernard Shaw in 1935, “…you have to know that I believe myself to be writing a book…
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Capital and Interest: A Critical History of Economical Theory
“The intentionally limited task to which I intend to devote myself in the following pages is that of writing a critical history of the theoretical problem of interest. I shall endeavour to set down in their historical development the scientific efforts made to discover the nature and origin of interest, and to submit to critical…
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Atlas Liberty Cafe with Peter Boettke
Please join us for September’s edition of the Atlas Liberty Café on Wednesday, September 22, from 10:00 AM – 11:00 AM, at the Cato Institute. Liberty Café seeks to bring together allies with interests in worldwide issues to (1) share perspectives on global developments, and (2) provide opportunites for networking and discovering synergies. This month’s…
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“Spreading Hayek, Spurning Keynes”
“To these free-market economists, government intrusion ultimately sows the seeds of the next crisis. It hampers what one famous Austrian, Joseph Schumpeter, called the process of “creative destruction.” Governments that spend money they don’t have to cushion downturns, they say, lead nations down the path of large debts and runaway inflation. Eight decades ago, in…
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“The Austrian Theory: One More Time”
“The Austrian theory is not a theory of recessions per se; it is a theory of the unsustainable boom. As such, it has a much stronger link to the underlying microeconomics than does much of today’s mainstream theorizing. The Austrians focus broadly on credit markets and ask what happens when the price of credit, i.e.,…
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Inflation: Watering Down the Punch
“With the recent financial crisis macroeconomic issues are receiving more and more attention. Inflation is one of those issues. Many claim inflation to be the cause of the crisis; which has even given the Austrian business cycle theory attention from the media. The theory states that an increase in the money supply causes a false…
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A Conversation with Milton Friedman – Liberty Fund
“Milton Friedman discusses his economic ideas with Gary S. Becker. Recipient of the 1976 Nobel Memorial Prize in Economics, Milton Friedman has long been recognized as one of our most important economic thinkers, and a leader of the Chicago school of monetary economics. A senior research fellow at the Hoover Institution since 1977, he is…
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Norman Macrae, Sound Money and the IEA
“For me, the most convincing has been the most radical number 70, by the Nobel Prize -winner Professor F. A. Hayek, which advocated the Denationalization of Money”
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“Some Unpleasant Monetarist Arithmetic”
“In his presidential address to the American Economic Association (AEA), Milton Friedman (1968) warned not to expect too much from monetary policy. In particular, Friedman argued that monetary policy could not permanently influence the levels of real output, unemployment, or real rates of return on securities. However, Friedman did assert that a monetary authority could…
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“A Free-Market Monetary System”
“When a little over two years ago, at the second Lausanne Conference of this group, I threw out, almost as a sort of bitter joke, that there was no hope of ever again having decent money, unless we took from government the monopoly of issuing money and handed it over to private industry, I took…
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Hayek on the need to win the ideas war to bring sound money back
In the preface to one of his books, Hayek wrote that “Indeed I must admit that–although I am a convinced believer in the international gold standard–I regard the prospects of its restoration in the near future not without some concern. Nothing would be more fatal from a long run point of view than if the…