Posts Tagged ‘ economics ’

Happy 117th birthday, Hayek

May 9, 2016
posted by

Eamonn Butler Adam Smith Institute
by Dr. Eamonn Butler  

"FA Hayek, the Anglo-Austrian Nobel economist and liberal thinker, was born yesterday in 1899. Hayek's economic works in the 1930s, researched with his mentor Ludwig von Mises, showed how boom and bust cycles arose from the inept government manipulation of credit; and he became the leading critic of collectivism, central planning and the expansionist interventionism of John Maynard Keynes (1883–1946), arguing that the latter would lead to inflation and economic dislocation." (05/09/16)

http://www.adamsmith.org/blog/happy-117th-birthday-hayek  

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The Keynesian model is not a “big government” model

May 4, 2016
posted by

Scott Sumner EconLog
by Scott Sumner  

"Before getting into this post, let me remind you of previous pointless debates, such as whether 'Islam' is 'really' a this or that sort of religion. I hope my readers can see the pointlessness of those debates. Similarly, I do understand that many Keynesians, and also many anti-Keynesians, think that Keynesianism is a sort of big government ideology, at least when compared to new classical economics, monetarism, Austrianism, etc. So there is a sense in which the title of this post is wrong. If Keynesians act as if their model has big government implications, then in a sense it does. So what do I mean by the title of the post? I mean that the technical aspects of the model have no big government implications, and that people who claim otherwise are simply using bad logic." (05/04/16)

http://econlog.econlib.org/archives/2016/05/the_keynesian_m.html  

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Is the Austrian theory enough?

April 27, 2016
posted by

Steven Horwitz Foundation for Economic Education
by Steven Horwitz  

"The Austrian theory explains what economist Roger Garrison has called 'the unsustainable boom.' It shows that if a boom is set in motion by overly expansionary monetary policy, then the apparent growth taking place during that boom will not be sustainable. The artificial boom contains the seeds of its own bust, and the illusory growth will soon be revealed as such. But there is much that the theory does not tell us." (04/27/16)

https://fee.org/articles/is-the-austrian-theory-enough/  

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Something of a blow to Piketty’s thesis

April 21, 2016
posted by

Tim Worstall Adam Smith Institute
by Tim Worstall  

"The more research that gets done into the details of Thomas Piketty's thesis (essentially, wealth concentration will leave us all as serfs again) the more there seem to be great gaping holes in it. For example, a central piece of the logic is that wealth will pile up, this will be inherited, and that wealth inequality will thus get worse over the generations. We're not convinced that such a bourgeois world would be a bad one but that thesis does depend upon the idea that inheritance concentrates wealth. Which, apparently, it doesn't ..." (04/21/16)

http://www.adamsmith.org/blog/something-of-a-blow-to-pikettys-thesis  

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Ragnar Frisch: The first Nobel laureate chosen over Mises

April 13, 2016
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Karl-Friedrich Israel  

"We cannot know what the committee's reasons and motivations were behind awarding the prize in 1974 to Hayek, but it is obvious that Hayek, as a free market economist, was the exception among the first recipients. Mises would have been too, and possibly more so. All other recipients prior to Hayek, and also Gunnar Myrdal who won the prize jointly with Hayek, were advocates of economic planning, and had to a greater or lesser degree contributed to the transformation of economics into a quantitative-mathematical discipline designed after the natural sciences. A case in point is the first recipient of the Nobel Prize in 1969, Norwegian economist Ragnar Frisch (1895–1973) -- the first economist chosen over Mises." (04/13/16)

https://mises.org/blog/ragnar-frisch-first-nobel-laureate-chosen-over-mises  

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Economics: It’s simpler than you think

March 30, 2016
posted by

David Gordon Ludwig von Mises Institute
by David Gordon  

"In the view of John Tamny -- an editor at Forbes and RealClearMarkets -- economics as it is usually studied and taught in universities is unnecessarily complicated. The basic truths of economics are simple and require no difficult mathematics to understand." (03/30/16)

https://mises.org/library/economics-its-simpler-you-think  

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Is barter a myth?

March 16, 2016
posted by

Foundation for Economic Education Foundation for Economic Education
by George Selgin  

"So far as some people are concerned, when it comes to bashing economists, any old stick will do. That, at least, seems to be true of those anthropologists and fellow-travelers who imagine that, in demonstrating that certain forms of credit must be older than either monetary exchange or barter, they’ve got some of the leading lights of our profession by the short hairs. The stick in this case consists of anthropological evidence that’s supposed to contradict the theory that monetary exchange is an outgrowth of barter, with credit coming afterwards. That view is a staple of economics textbooks. Were it nothing more than that, the attacks would hardly matter, since finding nonsense in textbooks is easier than falling off a log. But these critics have mostly directed their ire at a more heavyweight target: Adam Smith." (03/16/16)

https://fee.org/articles/is-barter-a-myth/  

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Carl Menger and the foundations of Austrian economics

February 23, 2016
posted by

Richard M. Ebeling Future of Freedom Foundation
by Richard M Ebeling  

"Today is Austrian economist, Carl Menger's, birthday. Born on February 23, 1840, he died on February 26, 1921, at the age of 81. Menger is most well known as one of the first formulators of the theory of marginal utility, separately though in published form almost simultaneously, with William Stanley Jevons and Leon Walras in the early 1870s. But this work also marked the beginning of a uniquely distinct 'Austrian School of Economics' based on the theory of subjective value, of which he became viewed as the 'founding father.'" (02/23/16)

http://fff.org/explore-freedom/article/carl-menger-and-the-foundations-of-austrian-economics/  

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The follies and fallacies of Keynesian economics

February 16, 2016
posted by

Richard M. Ebeling Future of Freedom Foundation
by Richard M Ebeling  

"Keynes believed not only that the market economy could not keep itself on an even keel he also believed that it would be undesirable to allow the market to work. He once said that to have the market determine prices and wages to balance supply and demand was to submit society to a cruel and unjust 'economic juggernaut.' Instead, he wanted wages and prices to be politically fixed on the basis of 'what is 'fair' and 'reasonable' as between the [social] classes.'" (02/16/16)

http://fff.org/explore-freedom/article/the-follies-and-fallacies-of-keynesian-economics/  

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Joseph Schumpeter the “father” of capitalist “creative destruction”

February 8, 2016
posted by

Richard M. Ebeling Future of Freedom Foundation
by Richard M Ebeling  

"Today is Austrian-born economist, Joseph A. Schumpeter's, birthday. Born on February 8, 1883, he died on January 8, 1950. Schumpeter is famous as a leading 20th century formulator of the notion of the entrepreneur as dynamic innovator of change, and also as a master of the history of economic ideas." (02/08/16)

http://fff.org/explore-freedom/article/joseph-schumpeter-the-father-of-capitalist-creative-destruction/  

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Why we need a recession

January 21, 2016
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Ronald-Peter Stoferle  

"According to the National Bureau of Economic Research (NBER), a recession is defined as a 'significant decline in economic activity spread across the economy, lasting more than a few months.' Often, this is understood as two consecutive quarters of negative economic growth as measured by a country's GDP. Public opinion is generally quite simple in regard to recession: upswings are generally welcomed, recessions are to be avoided. The 'Austrians' are however at odds with this general consensus -- we regard recessions as healthy and necessary. Economic downturns only correct the aberrations and excesses of a boom." (01/20/16)

https://mises.org/library/why-we-need-recession  

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Austrian economics is more than free-market economics

January 13, 2016
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Matt McCaffrey  

"Austrian economists are known for supporting free markets and criticizing government intervention. In fact, many people mistakenly think of Austrian economics as nothing more than a radical defense of free markets, though it's really a framework for studying human action and its social implications. Still, you can usually spot free market conclusions lurking in the background of Austrian work, and this raises important questions about how policy implications influence the development of theory." (01/12/16)

https://mises.org/library/austrian-economics-more-free-market-economics  

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The wealth of everyone

January 11, 2016
posted by

Lawrence W. Reed Foundation for Economic Education
by Lawrence W Reed  

"Adam Smith entered a world that his reason and eloquence would later transform. He was baptized on June 5, 1723, in Kirkcaldy, Scotland. It's presumed that he was either born on that day or a day or two before. He would become the Father of Economics as well as one of history's most eloquent defenders of free markets." (01/08/16)

http://fee.org/freeman/the-wealth-of-everyone/  

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What would an IS shock look like?

January 10, 2016
posted by

Scott Sumner EconLog
by Scott Sumner  

"One thing that makes it hard to discuss macroeconomics with people is the widely held assumption that changes in interest rates reflect changes in monetary policy. That misconception comes from the fact that people misinterpret the implications of two true facts: 1. In the IS/LM model, an easy money policy lowers interest rates. 2. The Fed targets short term interest rates. People think that if the Fed is controlling rates, and if an easy money policy causes rates to fall in the IS/LM model, then a fall in rates must be an easy money policy. But of course this doesn't at all follow from the previous assumptions." (01/09/16)

http://econlog.econlib.org/archives/2016/01/what_would_an_i.html  

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“Paradise for an Austrian researcher”

January 7, 2016
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by staff  

Interview with David Sanz Bas. Bas: "When I started my bachelor in economics, I considered myself a Marxist. By chance, when I was twenty (it was 2004), I had the opportunity to read Carl Menger’s Principles of Economics. This book made a deep impression on me and, after a lot of thinking and more reading, I became an Austrian. By that time, I had become interested in activism, and, in 2005, some friends and I founded an online forum where we discussed and debated lively topics on economics, defense, history, political options, environmentalism, etc. We did this with random online socialists, libertarians, neocons, fascists, and hippies. Through this, I discovered the Mises Institute and its website, and I liked it a lot." (01/06/15)

https://mises.org/library/paradise-austrian-researcher  

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Why Austrians are not neoliberals

January 4, 2016
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Philipp Baggus  

"The neoclassical mainstream profession was unable to predict the Great Recession. As neoclassical economists believed in a new age of macroeconomic stability, dubbed the Great Moderation, in which central banks had basically abolished harsh recessions, they were taken by surprise by the immense problems the financial system and the world economy started to experience in 2008." (01/04/16)

https://mises.org/library/why-austrians-are-not-neoliberals  

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Comparative advantage: An idea whose time has passed

December 28, 2015
posted by

Foundation for Economic Education Foundation for Economic Education
by Michael Munger  

"The notion of comparative advantage is empirically misleading, because it sounds deterministic. There are few situations where fixed factors make the relative opportunity costs of different actions immutable. Instead, cost and productivity differences are endogenous, the consequence of human ingenuity and the division of labor. Today's cost advantage for one country may disappear if another country finds a better, cheaper way to produce the product. And the way to specialize is to exploit the division of labor." (12/28/15)

http://fee.org/freeman/comparative-advantage-an-idea-whose-time-has-passed/  

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Adam Smith on public policy: Occupational licensing

December 23, 2015
posted by

Libertarianism.org Libertarianism.org
by Paul Mueller  

"Recent Left Smithian scholarship has rightly highlighted Smith's concern for the poor. Ignoring how Smith talked about the poor misses a key aspect of his thought: the poor benefit tremendously from free exchange and the division of labor. Smith saw markets, not government aid, as the primary means of bettering the condition of the poor. When Smith discusses the necessary expenses of the sovereign, he makes no mention of aid programs for the poor." (12/23/15)

http://www.libertarianism.org/columns/adam-smith-public-policy-occupational-licensing  

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Labor econ versus the world: Ecumenical edition

December 23, 2015
posted by

Bryan Caplan EconLog
by Bryan Caplan  

"Most courses in labor economic don't strive to undermine our society's secular religion. Mine does. I suspect that most labor econ professors would object to my efforts. Shouldn't a college class provide a balanced discussion of the issues, instead of trying to change the way students see the world? Yes and no. Of course college class should provide a balanced discussion of the issues. But if students arrive with a bunch of silly preconceptions, changing the way students see the world is a precondition for balanced discussion." (12/23/15)

http://econlog.econlib.org/archives/2015/12/labor_econ_vers_2.html  

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Labor econ versus the world: Further thoughts

December 22, 2015
posted by

Bryan Caplan EconLog
by Bryan Caplan  

"In my youth, I saw Industrial Organization as the heart of our secular religion. My history textbooks loudly and repeatedly decried 'monopoly;' teachers, peers, and parents echoed their complaints. Since the late-90s, however, such complaints have faded from public discourse. The reason isn't that plausible examples of monopolies have vanished. If anything, firms that look like monopolies -- Amazon, CostCo, WalMart, Starbucks, Uber, Facebook, Twitter -- are higher-profile than ever. But the insight I preached in my youth -- the main way firms obtain and hold monopoly on the free market is reliably giving consumers great deals -- is almost conventional wisdom. What modern consumer fears Amazon or Starbucks?" (12/22/15)

http://econlog.econlib.org/archives/2015/12/labor_econ_vers_1.html  

1 Comment »

Simple economic truths for entrepreneurs

December 22, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Per Bylund  

"It's no news to Austrians that the world is suffering from a lack of economic understanding. With the sorry state of mainstream economics education, this economic illiteracy is an expected result. (And with the popular belief in large-scale, one-size-fits-all political solutions to [politically created] problems, dismissing economic sense is all but necessary.) Yet the whether or not people wish it, economic truths remain true - and they affect our everyday lives. Entrepreneurs, who spend every waking hour trying to make ends meet in untested market territory, are bound to learn this lesson. But without a proper economic understanding, they struggle with fitting the pieces of the puzzle together and see the whole picture." (12/21/15)

https://mises.org/blog/simple-economic-truths-entrepreneurs  

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Why capitalists are repeatedly “fooled” by business cycles

December 21, 2015
posted by

Frank Shostak Ludwig von Mises Institute
by Frank Shostak  

"According to the Austrian business cycle theory (ABCT) the artificial lowering of interest rates by the central bank leads to a misallocation of resources because businesses undertake various capital projects that -- prior to the lowering of interest rates -- weren't considered as viable. This misallocation of resources is commonly described as an economic boom. As a rule, businessmen discover their error once the central bank -- which was instrumental in the artificial lowering of interest rates -- reverses its stance, which in turn brings to a halt capital expansion and an ensuing economic bust. From the ABCT one can infer that the artificial lowering of interest rates sets a trap for businessmen by luring them into unsustainable business activities that are only exposed once the central bank tightens its interest rate stance." (12/21/15)

https://mises.org/library/why-capitalists-are-repeatedly-fooled-business-cycles  

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My view of macro

November 16, 2015
posted by

Scott Sumner EconLog
by Scott Sumner  

"Several other bloggers have recently described how they visualize macro, so I'll play copycat. I see three types of macro, each radically different from the other two: Long run nominal is the easiest to explain, then business cycles, and long run real growth is the most complex." (11/16/15)

http://econlog.econlib.org/archives/2015/11/my_view_of_macr.html  

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Deaton wins economics Nobel Prize for work on consumption, poverty

October 12, 2015
posted by

Reuters Reuters    

"British-born economist Angus Deaton has won the 2015 economics Nobel Prize for his work on consumption, poverty and welfare that has helped governments to improve policy through tools such as household surveys and tax changes. The Royal Swedish Academy of Sciences said the microeconomist's work had been a major influence on policy making, helping for example to determine how different social groups are affected by specific changes in taxation." (10/12/15)

http://reut.rs/1jrRffX  

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Yes, you do understand economics

September 16, 2015
posted by

Mises Canada
by Michael McKay  

"The other day I was having coffee with a new friend, a retired businessman who customized luxury cars in California. I mentioned I had recently retired from owning an investment firm and had many years of study of economics, especially Austrian Economics. As so many people I have met before him, he said, 'I really don't understand economics and always have been confused by it.' To which I surprised him with, 'Of course you understand economics; it is the thought process you use every day to deal with three things: Scarcity, Property and Relationships.'" (09/15/15)

https://mises.ca/posts/articles/yes-you-do-understand-economics-2/  

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