Is laboratory in economics possible?
byIn the natural sciences, a laboratory experiment can isolate various elements and their movements. There is no equivalent in the discipline of economics….
August, 2020
The Failures of the ‘War on Drugs’
byI would like to congratulate drugs… for winning the war on drugs. Ever since its declaration by Richard Nixon in 1971, a vicious cycle…
Cut in government outlays is the true tax cut
byWe suggest that projects that government undertakes can be classified as wealth squandering. The fact that the private sector does not undertake these projects…
When does a recession become a depression?
byDefining a depression as opposed to a recession is open to wide interpretation Recessions are a natural part of the credit cycle Depressions…
Why the policy of price stability leads to more instability
byOne of the duties that a central bank is expected to fulfill is to keep the general level of prices in the economy stable….
An unexpected systemic crisis is for sure
byDownturns in bank credit expansion always lead to systemic problems. We are on the edge of such a downturn, which thanks to everyone’s focus…
The Quick and the Dead
by“The operation was successful but the patient died.” “Teach your kids about compounding: put your money in a savings account and watch it double…
Switzerland’s Approach to Giving the Economy a Lifeline
byby Henrique Schneider One particularly important lesson to learn from the Covid-19 drama is which political decisions could help companies through the crisis. It…
Why the US Economy Is Stronger Than the Eurozone’s
byThe United States is showing resiliency and strength compared with other leading economies worldwide. The impact of the covid-19 forced shutdown crisis is lower in the United States…
Paul Krugman’s Ad Hominem Defense of Central Banking
byOne of the sorriest aspects of almost all political discussions nowadays is how often they seem to degenerate into rude ad hominem attacks rather…