Monetary Policy
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In a Culture of Excess, the Fat Cats will Rule
“Free market economists are not necessarily defenders of business. Crony capitalism has a long history. Mercantilism was a form of crony capitalism, and was the main target of Adam Smith’s critical abilities. And while modern Smithians understand how important a vibrant financial market is to the advancement of generalized prosperity, the crony capitalism of Wall…
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China on a Tightrope
Economic reform requires political reform. China’s leaders must loosen control if they want harmony.
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“Academia’s War Against Free Market Money”
“In a confrontational and much-needed LewRockwell.com article, Prof. William Anderson launched a counter-attack against mainstream academic economists’ refusal to consider seriously the Austrian School’s theory of money. Despite the fact that Ludwig von Mises’ 1912 theory of money explains booms and busts better than rival theories, and despite the fact that Austrian School disciples predicted…
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“Free Market Money – Instead of Political Manipulation”
“Money is the most important commodity in an economic system Indeed, money ‘makes the world go ’round.’ This is because money is the general medium of exchange. We sell our products and services for money, and then use it to buy the products and services of others. Money also permits us to comparison shop. Since…
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“Euro Under Pressure As Greek Bonds Slump”
“The euro is slumping against the dollar Wednesday morning as Greek bond prices tumble and their yields surge higher against their German counterparts. The dollar is split against other major currencies, with little change against the yen, a retreat against the Canadian dollar and a partial rebound against the U.K. pound. As talks between Greece,…
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“The Financial Crisis Grinch”
Our friends at the Cato Institute have offered this podcast on the financial crisis. “The Financial Crisis Grinch” Featuring Gerald P. O’Driscoll, Jr. Novermber 24, 2008.
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Hyperinflation
“Inflation is a sustained increase in the aggregate price level. Hyperinflation is very high inflation. Although the threshold is arbitrary, economists generally reserve the term ‘hyperinflation’ to describe episodes when the monthly inflation rate is greater than 50 percent. At a monthly rate of 50 percent, an item that cost $1 on January 1 would…
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The Seigniorage Curse
“The Seigniorage Curse appears to hollow out the economy by the following manner: First, the premium charged to holders of dollars becomes a new source of accrued, aggregate revenue. This extra capital flowing into the economy is initially seen as a global honoring of our economy’s strength, and innovation. But when innovation falters and less…
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Politicising money lending is not the path to prosperity
“One part of Alastair Darling’s Budget that appears to have received little attention from the media is his plan for a ‘Credit Adjudication Service’. This new body, it appears, will provide an appeals process for small and medium businesses that have been denied credit by banks. Regardless of the fact that, according to the British…
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Monetary Policy in a World of Uncertain Productivity Growth
“This paper considers inflation forecasts for 2001 under two different assumptions about productivity growth. One assumption, the optimistic one, is that productivity growth has risen above its long-run historical average and that 2001 will see near price stability. The other, the pessimistic one, is that monetary policy itself has been a major factor influencing productivity…
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Inflation
“Inflation rates vary from year to year and from currency to currency. Since 1950, the U.S. dollar inflation rate, as measured by the December-to-December change in the U.S. Consumer Price Index (CPI), has ranged from a low of −0.7 percent (1954) to a high of 13.3 percent (1979). Since 1991, the rate has stayed between…
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“Obama Pays More Than Buffett”
“The bond market is saying that it’s safer to lend to Warren Buffett than Barack Obama. Two-year notes sold by the billionaire’s Berkshire Hathaway Inc. in February yield 3.5 basis points less than Treasuries of similar maturity, according to data compiled by Bloomberg. Procter & Gamble Co., Johnson & Johnson and Lowe’s Cos. debt also…