Is the US heading for an economic bust?
byOn Wednesday December 16 2015 Federal Reserve Bank policy makers raised the federal funds rate target by 0.25% to 0.5% for the first time…
Austrian School
Eugen von Bohm-Bawerk: How Peak Debt Constrain the Fed from Moving Rates Higher
bySource: http://bawerk.net/2015/12/11/how-peak-debt-constrain-the-fed-from-moving-rates-higher/ We have argued for a long time that 2016 will probably be a year of recession in the US and the Federal…
Expectations and business cycles
byAccording to the Austrian Business Cycle Theory (ABCT) the artificial lowering of interest rates by the central bank leads to a misallocation of resources…
Paper Money versus the Gold Standard
byWe are living in a time that can only be considered monetary chaos. The U.S. Federal Reserve has manipulated key interest rates down to…
How Money Disappears in a Fractional-Reserve Money System
byMost experts are of the view that the massive monetary pumping by the US central bank during the 2008 financial crisis saved the US…
Will a GDP Futures Market Be Liquid?
byAt the Cato Monetary Conference this week, Scott Sumner said he had a “modest” proposal, that there should be a highly liquid futures market…
Mises.org: The Problem With “Rules-Based” Monetary Policy
bySource: https://mises.org/library/problem-rules-based-monetary-policy Author: Tommy Behnke The phrase “rules-based monetary policy” has frequented conservative circles a lot lately. Republican presidential candidate Ted Cruz expressed his…
Review of Mirowskis Never Let a Serious Crisis go to Waste
byINTRODUCTION Philip Mirowski, known for his book More heat than light – economics as social physics, physics as nature’s economics in which…
Money supply versus money demand
byAccording to popular thinking not every increase in the supply of money will have an effect on economic activity. For instance, if an increase…
Advice to the Prime Minister/President
byYour country faces a stagnating economy. Let us assume your Prime Minister (or President if that is who holds the executive power) seeks advice…