Monetary Economics

Robert E. Wright

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6/16/21

The Horrors of Hyperinflation

“Governments have few universally accepted goals. National defense, protection of property, and stability of the unit of account are arguably the three most important because all else rides on them. Hyperinflation destroys all three, so any serious risk of hyperinflation is simply unacceptable from a policy standpoint.” ~ Robert E. Wright
Peter C. Earle

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6/15/21

El Salvador Is Not the Birthplace of Bitcoin’s Future

“Imposing the use of Bitcoin by force through a software oligopoly–through a scheme which may ultimately pose a threat to the entire El Salvadoran economy–is almost as far from Satoshi’s Bitcoin objectives as the fiat dollar is.” ~ Peter C. Earle
Donald J. Boudreaux

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6/15/21

This Claim of Market Failure Deserves No Credit

“If you who claim to identify a market failure could, but don’t, voluntarily put your own money where your mouth is in an attempt to address that alleged failure, why should anyone listen to your pleas for government to coercively put other people’s money where your mouth is?” ~ Donald J. Boudreaux
Art Carden

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6/13/21

Where Economics and Management Studies Overlap: A Brief Review of Austrian Perspectives on Entrepreneurship, Strategy, and Organization

“Elements is a good refresher for people who haven’t thought about it in a while, and I think it’s also a good jumping-off point for teachers looking to organize lectures and classroom activities. Yes, markets tend toward equilibrium, but this Element points us to the journey, and that’s where all the entrepreneurial action is.” ~…
Thomas L. Hogan

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6/8/21

Problems of Federal Reserve Policy—and How to Solve Them

“To stabilize the economy, informed citizens must study the faults of discretionary central banking and call for reforms to protect against them. ‘Money and the Rule of Law’ accomplishes the first goal. The second is up to us.” ~ Thomas L. Hogan
Thomas L. Hogan

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6/6/21

Is the Fed Paying Banks Not to Lend?

“The evidence shows that banks treated excess reserves as a profitable alternative to loans. High rates of IOER caused them to increase reserve holdings and decrease their loan allocations. The Fed was indeed paying banks not to lend.” ~ Thomas L. Hogan
James L. Caton

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6/3/21

Why Do Inflation Expectations Matter?

“Powell is telegraphing to the market that he hears their concerns about inflation. We will have to wait through the next several months to learn whether or not investors will be convinced.” ~ James L. Caton
Joakim Book

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5/31/21

You Cannot Eat Bitcoin

“You cannot eat bitcoin, or dollars, or bank balances, which means that whatever vehicle you use to move value across time has an exchange rate risk. Many bitcoiners’ mistake is to think that their preferred asset avoids this; Taleb’s mistake is to think that others can have a different view of government than him.” ~…
Gunther Schnabl

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5/30/21

Argentina’s Creative Approaches to Debt Write Offs

“Whereas some private vulture funds found brutal means to achieve full repayment on their assets, international public institutions such as the IMF were repeatedly willing to take over the risk. This leniency may be due to the fact that the international taxpayers seem unaware of the burdens. It has to be seen which strategies will…
J.P. Koning

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5/29/21

Fighting Ransomware Doesn’t Require Banning Cryptocurrency

“With OFAC as coxswain, an embargo might achieve everything that a ban on cryptocurrency promises to achieve without depriving gamblers, outsiders, and hobbyists of a product they utilize. It would also be more effective than the status quo, which is not capable of stopping criminals who operate with impunity from noncompliant jurisdictions.” ~ J.P. Koning