Durable Goods Add To The Idea of Depression (Small ‘d’)
There wasn’t anything new or surprising in the advance durable goods report. Shipments (ex transportation) were flat and orders were up 1% year-over-year (NSA)….
Bawerk.net: China’s Lender of Last Resort Conundrum
It took a while to play through, but our assessment that China would increasingly become the petro-state lender of last resort is starting to come…
Zero Hedge: US Negative Interest Rate Bets Surge To Record Highs
As the “deflationary supernova” sweeps across the world, dragging bond yields to zero-and-beyond, even the almighty omniscent Federal Reserve has been forced to capitulate…
Rationalizing ‘Rational’
Walter W. Heller was said to have been an “educator of Presidents.” As an economist and Presidential advisor in the inner circles of DC,…
bawerk.net: Tough Choices: Peg or Banking Crisis?
During the reign of the mighty petro-dollar standard, it was necessary for major oil exporters to recycle their dollar holdings back into the dollar-based…
Central Bankers Claim: Things Are Better than You Think
In our time, the greatest source of money chaos is now the global 2%-inflation standard. Deflation-phobic central bankers, led by the FOMC at the…
Benn Steil: Is the Fed Losing Credibility? A Response to Kocherlakota
Former Minneapolis Fed president Narayana Kocherlakota says that the Fed has a credibility problem. Investors, he argues, have lost faith that the Fed will…
It’s Not Stupidity, It Is Apathy (For Now)
Ten days ago, it was reported that the Bank of Japan for the first time set aside reserves against expected losses should its massive…
ECB Policy-Failure On Display: European Businesses Aren’t Planning To Invest
There once was a time (at least in banished Austrian economic circles) when low market interest rates signaled to entrepreneurs a positive environment in…
Academic Skulduggery – How Ivory Tower Hubris Wrecks your Life
Source: http://bawerk.net/2016/05/23/academic-skullduggery-how-ivory-tower-hubris-wrecks-your-life/ In the 1970s economists started to incorporate rational expectations into their models and not long after the seminal Kydand & Prescott (1977) article…