Posts Tagged ‘ economics ’

Epic fail: 100 years of the Fed

December 17, 2014
posted by

Jeffrey Tucker Foundation for Economic Education
by Jeffrey A Tucker  

"The most surprising monetary innovation of our time is bitcoin, a privately produced digital currency and payment system. It is a global system that provides a dramatic alternative to central banking and monetary nationalism as we know it. As with other innovations, such as email and texting, it could challenge the dominance of government policies. What will we lose if the private system replaces the government-managed one? A look at the history of central banking -- and the theories behind the history -- shows that we only stand to lose a system that has proven unworkable and dangerous in every way." (12/17/14)

http://fee.org/freeman/detail/epic-fail-100-years-of-the-fed  

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The ECB: Is it a hopeless case?

December 17, 2014
posted by

Scott Sumner EconLog
by Scott Sumner  

"Remember the joke about the motorist who gets lost, and then asks for directions to Podunk? The farmer replies, 'If I was headed to Podunk, I wouldn't start from here.' Yes, and if I was targeting inflation at 1.9%, I would not start from a position of negative 5-year inflation expectations in the eurozone's most prosperous country. But first let's review how they got so far off course." (12/16/14)

http://econlog.econlib.org/archives/2014/12/the_ecb_is_it_a.html  

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James Grant explains “The Forgotten Depression”

December 16, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Joseph Calandro Jr.  

"To better understand the current economic environment, financial analyst, historian, journalist, and value investor James Grant, who is informed by both Austrian economics and the value investing theory of the late Benjamin Graham, analyzes the Depression of 1920–1921 in his latest work, The Forgotten Depression: 1921: The Crash That Cured Itself." (12/15/14)

http://mises.org/library/james-grant-explains-forgotten-depression  

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Cryptocurrencies and a wider digression theorem

December 12, 2014
posted by

Peter St. Onge Ludwig von Mises Institute
by Peter St. Onge  

"The debate whether or not cryptocurrencies are 'money' has put a spotlight on the Menger-Mises Regression Theorem. As stated, the theorem posits that a non-fiat money must have had value before it became a money. Some have used currencies' lack of antecedent value as knocking it off the money pedestal or as forcing cryptocurrencies to ignominiously piggyback on fiat currencies' own regressions." (12/11/14)

http://mises.org/library/cryptocurrencies-and-wider-regression-theorem  

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Every citizen must know basic economics

December 12, 2014
posted by

Robert P. Murphy Free Advice
by Robert P. Murphy  

"Citizens can only understand the implications of various State policies if they first learn basic economics. Fortunately, this is very easy to do with all of the free online books, videos, and articles put out by such places as the Mises Institute, the Foundation for Economic Education, the Independent Institute, and the Fraser Institute, to name just four (for whom I do work, full disclosure)." (12/10/14)

http://tinyurl.com/kxmbpcc  

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Does Europe have demand deficiency syndrome?

December 7, 2014
posted by

Frank Shostak Ludwig von Mises Institute
by Frank Shostak  

"There is no such thing as deficiency of demand that causes economic difficulties. The heart of economic growth is the process of real wealth generation. The stronger this process is the more real wealth can be generated and the stronger so-called economic growth becomes. What drives this process is infrastructure, or tools and machinery. With better infrastructure more and a better quality of goods and services, i.e., real wealth, can be generated." (12/05/14)

http://mises.org/library/does-europe-have-demand-deficiency-syndrome  

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Income inequality is a statistical artifact

December 2, 2014
posted by

Robert Higgs Independent Institute
by Robert Higgs  

"Income inequality has no necessary connection with poverty, the lack of material resources for a decent life, such as adequate food, shelter, and clothing. A society with great income inequality may have no poor people, and a society with no income inequality may have nothing but poor people. Coercively reducing income inequality by fiscal measures may do nothing to reduce the extent of real poverty and may indeed -- to tell the truth, almost certainly will -- create incentives that increase the extent of real poverty (and many other social ills). Probably no subject in the social sciences has created so much unnecessary heat. Yet, at the same time, economists actually know a great deal about it and can dispel the public’s confusion about it if they try." (12/01/14)

http://tinyurl.com/q4o7ufs  

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The false feminist economics methodenstreit: Competition versus cooperation

November 19, 2014
posted by

Libertarianism.org Libertarianism.org
by Mikayla Novak  

"The neoclassical mainstream of conventional economic thought, often the centre of feminist economic criticism, is grounded in the model of a rational, autonomous, self‑interested agent that makes optimising choices subject to exogenously imposed constraints. This agent is commonly referred to as the 'rational economic man' or 'homo economicus.' The key criticism levelled by feminist economists is that homo economicus represents a privileged masculine view of the economic order, to the exclusion of what are claimed to be feminine characteristics, such as connectivity, altruism, and emotionality." (11/18/14)

http://tinyurl.com/kgmvny9  

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In memory of Gordon Tullock

November 10, 2014
posted by

Lawson Bader Competitive Enterprise Institute
by Lawson Bader  

"Gordon fully understood the most important lesson of economics: Incentives matter. He refused to accept that 'public servants' can behave differently because of their supposed detachment from the hustle and bustle and profit motives of private industry. He was fiercely critical of government attempts to solve problems compared with the actions of private actors and institutions. He thought it wishful thinking that government bureaucrats could implement policies that benefit the common good, as if they could always remain aloof from trivial parochial concerns. He’d agree with that Depeche Mode lyric -- people are people." (11/10/14)

https://cei.org/content/memory-gordon-tullock  

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Gordon Tullock and the transitional gains trap

November 10, 2014
posted by

Robert Higgs Independent Institute
by Robert Higgs  

"Gordon Tullock, who died on Monday at the age of 92, was along with his longtime colleague James Buchanan, the founder of the modern field of public choice, which during the past fifty years has become a well-established subfield of economics and of political science and has also had an influence on other disciplines. Tullock himself is most closely associated with the idea of rent seeking, which would have caused less confusion and been more precise if it had been called privilege seeking. One of his most important contributions, which he expounded in a 1975 article in the Bell Journal of Economics, pertained to what he called the transitional gains trap." (11/06/14)

http://tinyurl.com/paywx5h  

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Why The Theory of Money and Credit is more important than ever

November 9, 2014
posted by

Richard M. Ebeling Ludwig von Mises Institute
by Richard M. Ebeling  

"Eighty years ago, in the autumn of 1934, Ludwig von Mises's The Theory of Money and Credit first appeared in English. It remains one of the most important books on money and inflation penned in the twentieth century, and even eight decades later, it still offers the clearest analysis and understanding of booms and busts, inflations, and depressions." (11/08/14)

http://tinyurl.com/pbxsn2y  

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On “economies of scale” and other magical incantations

November 5, 2014
posted by

Kevin Carson Center for a Stateless Society
by Kevin Carson  

"There's a certain kind of economic technocrat who tosses around the term 'economies of scale' like a Young Earth creationist tosses around the Second Law of Thermodynamics. This is true of legacy liberalism, obviously, which is still defined by the mid-20th century mass-production paradigm of Joseph Schumpeter, John Kenneth Galbraith and Alfred Chandler. It's also true of most Austrian economists in the tradition of Mises, who see capital-intensiveness or 'round-aboutness,' as such, as the key to productivity." (11/04/14)

http://c4ss.org/content/33168  

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Nobel winner Jean Tirole’s faulty views on monopoly

October 29, 2014
posted by

Frank Shostak Ludwig von Mises Institute
by Frank Shostak  

"Frenchman Jean Tirole of the University of Toulouse won the 2014 Nobel Prize in Economic Sciences for devising methods to improve regulation of industries dominated by a few large firms. According to Tirole, large firms undermine the efficient functioning of the market economy by being able to influence the prices and the quantity of products. Consequently, this undermines the well being of individuals in the economy. On this way of thinking the inefficiency emerges as a result of the deviation from the ideal state of the market as depicted by the 'perfect competition' framework." (10/29/14)

http://tinyurl.com/omsosj9  

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Why money doesn’t measure value

October 27, 2014
posted by

Robert P. Murphy Mises Canada
by Robert P. Murphy  

"Let me be clear: Gordon (and Mises) are right; money is not a 'measuring rod' of value. However, the reason Tamny and Miles are astounded by Gordon's position is that they think he is denying the (obvious) fact that people acquire money merely as a means to a further end. In the present post, let me try to clear up all of this confusion that the mischievous Gordon stirred up. As we'll see, it's precisely because people use money as a means to a further end, that it is NOT analogous to a ruler or clock or scale." (10/23/14)

http://mises.ca/posts/blog/why-money-doesnt-measure-value/  

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Ludwig von Mises and the Austrian theory of inflations and recessions

October 21, 2014
posted by

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

"Mises insisted that the economic rollercoaster of the business cycle was not caused by any inherent weaknesses or contradictions within the free market capitalist system. Rather, inflationary booms followed by the bust of economic depression or recession had its origin in the control and mismanagement by governments of the monetary and banking system." (10/21/14)

http://tinyurl.com/lggawz9  

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Four reasons the Bernanke-Yellen asset-price inflation may be nearing its end

October 20, 2014
posted by

Joseph T. Salerno Ludwig von Mises Institute
by Joseph T. Salerno  

"There are strong indications that the remarkable run up of asset prices in the last few years is beginning to run out of steam and may be on the verge of collapse. We will leave aside the question of whether the asset inflation is symptomatic of a garden-variety inflationary boom or is a more virulent bubble phenomenon in which prices are rising today simply because buyers anticipate that they will rise tomorrow." (10/17/14)

http://tinyurl.com/pc7t2zt  

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An Austrian economist reports from a mainstream economics conference

October 16, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Christopher Westley  

"Early on in the most recent meeting of the National Association of Business Economists (NABE) in Chicago, Dan Ratner, one of President Obama's tech gurus for the 2012 election cycle and expert in the hip field of Big Data mining, stated to his audience that 'there is no such thing as truth. There is only the most recent updated version of it.' Little did I know this was to be a recurring theme at this conference." (10/16/14)

http://tinyurl.com/p6xltub  

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Is the surge in capital goods orders due to malinvestment?

October 15, 2014
posted by

Frank Shostak Ludwig von Mises Institute
by Frank Shostak  

"There is no doubt that an increase in the quality and the quantity of tools and machinery (i.e., capital goods) is the key for the expansion of goods and services. But is it always good for economic growth? Is it always good for the wealth-generation process?" (10/15/14)

http://tinyurl.com/q958sug  

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Price deflation and price inflation are always “optimal”

October 14, 2014
posted by

Mateusz Machaj Ludwig von Mises Institute
by Mateusz Machaj  

"Media sources and many economists focus on price inflation and price deflation as the source of various economic ills, but, contrary to much of the rhetoric, price inflation and price deflation are always 'optimal' in the economic sense. At first, such a claim may seem controversial, since virtually all economists have something negative to say about either inflation or deflation. This concerns almost all schools of economic thought, mainstream and heterodox, including the Austrians." (10/13/14)

http://tinyurl.com/qcqpkxd  

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Hayek’s “rejuvenating event”

October 9, 2014
posted by

Foundation for Economic Education Foundation for Economic Education
by BK Marcus  

"When a free-market economist wins a Nobel Prize, the public does not suddenly embrace laissez-faire capitalism, but the Swedish socialist may have been prescient if he worried that honoring the Austrian would somehow hurt economic science as he conceived it. Hayek's work, then as now, is used as the antidote to Myrdal's conception of economics -- that is, economics as interventionism. One biographer describes Hayek's Nobel as 'the great rejuvenating event in his life.'" (10/09/14)

http://fee.org/the_freeman/detail/hayeks-rejuvenating-event  

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Piketty’s blind spot

September 11, 2014
posted by

Foundation for Economic Education Foundation for Economic Education
by Steve Fritzinger  

"The famous French economist should ask where wealth comes from." (09/11/14)

http://www.fee.org/the_freeman/detail/pikettys-blind-spot  

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The economics of American Pickers

September 11, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Joel Poindexter  

"As a frequent viewer of The History Channel I have come to appreciate several of its weekly programs, not only for their own sake, but for the many principles of economics demonstrated in each episode. I have written previously of the lessons from the pawn shop, describing a few notable economic concepts one learns from watching Pawn Stars and American Restoration. Another such television show is American Pickers. Here one sees not only classical economic theory in practice, such as comparative advantage and specialization and trade, but other Austrian insights as well." (09/10/14)

http://mises.org/daily/6874/The-Economics-of-American-Pickers  

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Ten reasons to condemn inflation

September 8, 2014
posted by

Ludwig von Mises Institute
by Andreas Marquart  

"Increasing the money supply that involves the granting of more credit means that new money is created by credit that is not covered by savings. This causes interest rates to fall more than would be the case without an expansion of the money supply. The result is an artificial economic boom, which politicians and the general public initially welcome. Investments are triggered that would not have been carried out if the invested capital had to be saved up first, prior to such investments. Therefore, there are insufficient resources available to bring all the projects thus begun to completion." (09/08/14)

http://mises.org/daily/6871/Ten-Reasons-to-Condemn-Inflation  

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The unseen costs of the minimum wage

September 4, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Josh Grossman  

"By raising wage rates, the public can see their states’ minimum-wage earners making more money. This is the factor that is seen. What is unseen is the number of jobs destroyed or citizens who would have been able to obtain jobs if the minimum wage were never raised in these states in the first place." (09/04/14)

http://mises.org/daily/6868/The-Unseen-Costs-of-the-Minimum-Wage  

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Austrian capital theory and Dawn of the Planet of the Apes

August 20, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Mark Tovey  

"During an early scene of Dawn of the Planet of the Apes, in which the hyper-intelligent apes were depicted hunting for deer in the forest surrounding their settlement, someone behind me interjected 'if those apes are so smart, how come they’re hunter-gatherers?' While a decent question, he received nothing but a shush from his more etiquette-conscious companion for raising it. While there are many factors other than intelligence that are relevant to a society’s choice of an agricultural or hunter-gather economy, Austrian capital theory can go a long way in helping to explain why the apes featured in the film can be both highly-intelligent and hunter-gatherers." (08/20/14)

http://tinyurl.com/prsewpj  

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