Capitalism and How Expectations Coordinate Markets
byOpen, competitive markets have a resilient capacity to successfully coordinate the actions of, now, billions of people around the world. With an amazing adaptability…
Austrian School
Are inflationary expectations the heart of inflation?
byFor most economic commentators the underlying driving force of inflation is inflationary expectations[1]. For instance, if there is a sharp increase in the price…
The fallacy of insufficient demand
byFollowing the ideas of Keynes and Friedman, most mainstream economists associate economic growth with increases in the demand for goods and services. Both Keynes…
The essence of profit
byIn most cultures, profit is seen as the outcome of exploitation of some individuals by some other individuals. Hence, anyone who is seen as…
America’s Great Depression and Austrian Business Cycle Theory
byWhen Murray Rothbard’s America’s Great Depression first appeared in print in 1963, the economics profession was still completely dominated by the Keynesian Revolution that began in…
Is the high level of debt a major economic risk factor?
byMany economic commentators regard high level of debt relative to GDP as a major risk factor as far as economic health is concerned. This…
Cobden Centre Seminar at the OECD and Meeting at the IMF
byLast Wednesday I gave a seminar at the OECD on the Austrian School of Economics. I presented with Professor Gunther Schnabl from Leipzig University,…
The fallacy of insufficient demand
byFollowing the ideas of Keynes and Friedman, most mainstream economists associate economic growth with increases in the demand for goods and services. Both Keynes…
The Fed’s Great Unwind: Will It Sink Us?
byIn the eyes of many people, the Federal Reserve (Fed) is an indispensable institution. We are told it supports growth and employment, fends off…
Are Economic Crises Inherent to Market Economies?
byIt is interesting to note that Marx, in his analysis of the capitalist economic system, basically concentrates on the study of the imbalances and…