Choose your own financial crisis
byDownload: “Choose your own financial crisis“, working paper Do you remember those “Choose your own adventure” stories from your childhood? For some time I’ve…
Austrian School
Equity markets and credit contraction
byThere is one class of money that is constantly being created and destroyed, and that is bank credit. Bank credit is created when a…
Low Interest Rates Cannot Save a House of Cards
byWhen is the price of some marketable good or service at or near zero? When either the supply of it is so plentiful that…
Eugen von Bohm Bawerk: From Miracle to Cataclysm – why the commodity bust will last for years
bySource: http://bawerk.net/2015/09/11/from-miracle-to-cataclysm-why-the-commodity-bust-will-last-for-years/ The Chinese Jīngjì qíjī, wirtschaftswunder, keizai no kiseki, milagro económico or whatever you want to call is neither a miracle nor distinctly…
Austrian Economics, Monetary Freedom, and America’s Economic Roller Coaster
byFor over a decade, now, the American economy has been on an economic rollercoaster, of an economic boom between 2003 and 2008, followed by…
The essence of interest rate determination
byAccording to mainstream thinking the Central Bank is the key factor in determining interest rates. By setting short-term interest rates the Central Bank, it…
Jackson Hole: Cherry Flavored Cyanide, or Strawberry
byThe Federal Reserve puts on a conference in the idyllic location of Jackson Hole, Wyoming. Of course it’s all about how best to centrally…
Real GDP and the strength of US economy
byUS real gross domestic product (GDP) grew faster than initially thought in Q2. GDP expanded at a 3.7% annual rate instead of the 2.3%…
Eugen von Bohm Bawerk: That 70s Show – Episode 3
bySource: http://bawerk.net/2015/08/22/that-70s-show-episode-3/ In the first episode we showed how the US became an unsustainable service sector based economy from the 1970s onward when service sector employment…
Eugen von Bohm Bawerk: That 70s Show – Episode 2
bySource: http://bawerk.net/2015/08/15/that-70s-show-episode-2/ In Episode 1 we showed how the US labour market changed dramatically from the 1970s on back of excess money printing which allowed Americans to…