Posts Tagged ‘ economics ’

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  

No Comments »

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/  

No Comments »

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  

No Comments »

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  

No Comments »

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  

No Comments »

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  

No Comments »

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  

No Comments »

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  

No Comments »

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  

No Comments »

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  

No Comments »

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  

No Comments »

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  

No Comments »

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  

No Comments »

Carl Menger’s revolution

August 14, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Mateusz Machaj  

"One often wonders whether differences in economic schools of thought are big enough to justify strict theoretical segregations. One such case is 'marginal economics.' Most textbooks point to the triumvirate of Walras, Jevons, and Menger, who independently discovered the notion of marginal utility and its relevance to the pricing process. Quite often these brilliant thinkers are homogenized as more or less indistinguishable figures who paved the way for modern microeconomic theory." (08/13/14)

http://mises.org/daily/6837/Carl-Mengers-Revolution  

No Comments »

Argentina: Another Keynesian success story that wasn’t their fault

August 4, 2014
posted by

Robert P. Murphy Mises Canada
by Robert P. Murphy  

"On July 30 S&P declared Argentina’s government technically in default on $13 billion of its sovereign bonds that were restructured after the government’s previous default back in 2002. Inasmuch as several of the world’s major Keynesian bloggers never tire of pointing out how great their 'model' of the economy has been performing, it’s worth reminding innocent readers of just how awful the Keynesian policy advice has been." (07/21/14)

http://tinyurl.com/kg34n62  

No Comments »

How to start reforming the Federal Reserve right now

July 24, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Brendan Brown  

"An essential component of monetary reform should be setting interest rates free. This means no more official pegging or guidance of short-term interest rates and no attempt to manipulate in various ways long-term interest rates. Markets can do a better job of discovering the neutral rates of interest (across different maturities) and positioning market rates at any time relative to these so as to guide the economy along an equilibrium path than any set of well-informed and even well-meaning Fed officials. This is all on the big assumption that the reformers can design a monetary system around a suitable firmly placed pivot." (07/23/14)

http://tinyurl.com/llxkxmm  

No Comments »

The economics of liberation theology

July 23, 2014
posted by

Acton Institute Acton Institute
by Carroll Rios De Rodriguez  

"How did dependency theory with its socialist-like proposals to solve poverty and the Marxist influence on liberation theology fuse together? One often hears disclaimers to the fact that not all dependency and liberationist writings were Marxist. This is of course true. Novak himself argued that 'liberation theology forms a tapestry much broader than its Marxist part and is woven of many colors.' It is worth stating that the work of carefully distinguishing between the various theoretical foundations suited to liberation theology, as Novak and Joseph Cardinal Ratzinger (later Pope Benedict XVI) did at the time, is not the same as trivializing the broader Marxist influences. There are some subtle differences between the Ratzinger-Novak caveat and other claims concerning the impact of Marxism." (07/23/14)

http://tinyurl.com/m2q2pbz  

No Comments »

Gold as an inflation hedge

July 23, 2014
posted by

Robert P. Murphy Liberty Chat
by Robert P. Murphy  

"When he’s not bashing Austrian economics, economist Noah Smith likes to mock the allegedly paranoid contributors to ZeroHedge. For example, in a recent post at Bloomberg, Smith argued that the goldbugs were full of it and that the yellow metal offered poor protection against an irresponsible Federal Reserve. In this post I’ll explain the actual case for gold, because plenty of people (not just Noah Smith) seem to think its virtues have been exaggerated." (07/22/14)

http://www.libertychat.com/2014/07/gold-inflation-hedge-robert-murphy/  

No Comments »

The neo-mercantilist hysteria over trade deficits

July 17, 2014
posted by

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

"One of the worst effects of modern Keynesian economics is that its total spending ('aggregate demand') approach to output and employment provides a pseudo-scientific justification for the central error of mercantilism -- an error that dates back to the sixteenth century. According to this ancient fallacy, a deficit in a nation's balance of payments results in a loss of demand, income, and jobs. This doctrine has been demolished time and again by economists during the past two-and-a-half centuries. Yet like the mythical Phoenix the mercantilist myth continually rises from its own ashes." (07/17/14)

http://tinyurl.com/ot568u4  

No Comments »

AD: Eleven stages of enlightenment

July 17, 2014
posted by

Scott Sumner EconLog
by Scott Sumner  

"Over at TheMoneyIllusion I've been having a discussion of aggregate demand. What does the term actually mean? In the comment section I see lots of average people giving common sense explanations, and also experts like Nick Rowe making high-level arguments. It might help if I walked people through the various levels of enlightenment ..." (07/17/14)

http://econlog.econlib.org/archives/2014/07/ad_eleven_stage.html  

No Comments »

Thomas Piketty and Mises’s “The Anti-Capitalistic Mentality”

July 13, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Andrew B. Wilson  

"As Mises notes, the critics and anti-capitalists go on telling and re-telling the same story: saying that 'capitalism is a system to make the masses suffer terribly and that the more capitalism progresses and approaches its full maturity, the more the immense majority becomes impoverished.' Indeed, that is the story Piketty tells in his book, which has soared to the top of the New York Times and Amazon best-seller lists. Does inequality rank as the great defining issue of the twenty-first century? If you agree with Piketty, it does." (07/11/14)

http://tinyurl.com/mubbbg5  

No Comments »

Jean-Baptiste Say: An underrated revolutionary

July 10, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Carmen Dorobat  

"Jean-Baptiste Say’s revolutionary and unyielding spirit has left its mark on his own life and on the history of economic thought. It is important that his contributions be brought back to the attention of modern scholars, as the debate with past and present Ricardian partisans will prove to be a fruitful one." (07/10/14)

http://tinyurl.com/pwlkct7  

No Comments »

R > G revisited

July 10, 2014
posted by

Liberty Unbound Liberty Unbound
by Andrew Ferguson  

Piketty’s massive tome oversimplifies to a single principle, given as r>g, meaning that the rate of return on wealth exceeds the rate of economic growth, at least in Western industrialized nations. Were this true, then income inequality would inexorably increase, and wealth would be concentrated in ever greater amounts in ever fewer hands. Of course, as Mark Skousen and Leland Yeager showed, Piketty’s principle rests on several unsustainable assumptions about the permanence of capital and the assumption of risk." (07/09/14)

http://libertyunbound.com/node/1275  

No Comments »

Investors and Austrian economics

July 6, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by staff  

Interview with Robert Blumen. Blumen: "There has been tremendous growth in interest in Austrian economics among financial professionals. I started an interest group for Austrians in Finance on LinkedIn which, in a few years, has grown to almost 2,000 members from the US, South America, East, Southern, and Central Asia, Africa, and Eastern and Western Europe. Peter Schiff appears regularly on financial shows. The Mises Institute drew hundreds of people from the investment world to an event in Manhattan." (07/04/14)

http://mises.org/daily/6795/Investors-and-Austrian-Economics  

No Comments »

Why timid reforms of central banks won’t work

June 30, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Frank Hollenbeck  

"The Federal Reserve System of central banking was a response to the financial panics of 1903 and 1907 that rocked the US financial system. One of the key objectives, if not the only real one, was to counterbalance the nefarious nature of fractional reserve banking. We now have experienced a century of living with a central bank and we must only conclude that it has failed as a counterbalance while making fractional reserve banking an even bigger, more nefarious master. The evidence is clear and reform of the system is not the answer. Only the abolition of this institution will begin to set our economic system on the right path." (06/30/14)

http://tinyurl.com/q2lclo8  

No Comments »

Our Sponsors




Making a living off your Drupal site?

Drupal Managed Hosting

Fed up with Maintenance and Hosting companies?