Posts Tagged ‘ economics ’

Sumner needs to watch some film and hit the gym

November 3, 2011
posted by

Free Advice
by Robert P. Murphy  

"The Fed today lowered its forecast for economic growth next year, and raised its forecast for unemployment. So Scott is saying, rather than refusing to pump in more money, and resting content with a worsening forecast, the Fed should do what it needs to do, so that it doesn’t have to give the public the bad news about gloomier prospects for next year. OK, now that we understand what Sumner is doing in his cute analogy, we are ready to get knocked onto the floor by how wrong the analysis is." (11/02/11)

http://bit.ly/uB3EZq  

No Comments »

The fundamental fallacies of macroeconomics

October 18, 2011
posted by

Competitive Enterprise Institute Competitive Enterprise Institute
by William Frezza  

"Do you sometimes wonder why economists are accorded such respect and influence given the fact that they claim knowledge over the unknowable, promote theories that are untestable, and make forecasts for which they are never held accountable? Isn’t that the definition of a witch doctor?" (10/18/11)

http://tinyurl.com/3vf2af3  

No Comments »

A comparison of the utility theory of Rothbard and Kirzner

October 17, 2011
posted by

Libertarian Papers
by Dan Mahoney  

"In this article we consider the theories of utility developed by Rothbard and Kirzner in their respective treatises on economic theory (Man Economy and State, and Market Theory and the Price System). We argue that while both authors were strongly influenced by Mises’ ordinalist conception of utility and in fact both authors affirm this conception in their initial expositions of utility theory, their subsequent developments diverge quite sharply." [abstract -- full paper available as PDF or MS Word download] (10/16/11)

http://bit.ly/p2N6Pi  

No Comments »

Two Americans win economics Nobel

October 10, 2011
posted by

Associated Press    

"Americans Thomas Sargent and Christopher Sims won the Nobel economics prize on Monday for research that sheds light on the cause-and-effect relationship between the economy and policy instruments such as interest rates and government spending. ... The Royal Swedish Academy of Sciences said the winners have developed methods for answering questions such as how economic growth and inflation are affected by a temporary increase in the interest rate or a tax cut." (10/10/11)

http://tinyurl.com/4xe33m9  

No Comments »

Important new evidence on regime uncertainty

October 9, 2011
posted by

Independent Institute Independent Institute
by Robert Higgs  

"The idea of regime uncertainty had sound economic theory and substantial empirical evidence to support it from the beginning, and a great deal of additional evidence has accumulated over the past three years. Yet critics have continued to dismiss it either as Republican bunk bought and paid for by Obama-hating billionaires or as a sort of 'just so' story concocted by flaky think-tank nobodies, such as yours truly. Now, however, the research reported by Baker, Bloom, and Davis knocks the ball firmly back into the critics’ court." (10/08/11)

http://bit.ly/q38IkG  

No Comments »

Varieties of Austrian Price Theory: Rothbard Reviews Kirzner

September 28, 2011
posted by

Libertarian Papers
by Joseph T. Salerno  

"The root of any system of economic theory is the theory of price. But while modern Austrian economists have put a great deal of effort and ingenuity into building up the superstructure of their discipline since the mid-1970s, they have paid scant attention to ensuring that the price theory supporting the edifice is a sound and settled doctrine." [abstract -- full paper available as PDF or MS Word download] (09/27/11)

http://bit.ly/o6f3Mx  

No Comments »

Austrian economics doesn’t have to be complicated

September 27, 2011
posted by

Adam Smith Institute Adam Smith Institute
by Henry Oliver  

"When presented with quotes by George Osborne and Vince Cable [from] 2009 that printing money was the last resort of desperate governments and 'Mugabe economics' Danny Alexander laughed it off. This is because people don’t really understand economics -- they see the headline figures, they associate recessions with whoever is in government; but as Ron Paul recently said, 'A lot of people just flat out don’t understand what I’m talking about.' But the Austrian explanation doesn’t have to be complicated." (09/27/11)

http://tinyurl.com/6kdplnr  

No Comments »

Why monetarism?

August 28, 2011
posted by

Ayn R. Key
by Ayn R. Key  

"Although Monetarism, as an interventionist economic policy, clearly isn’t libertarian, people continue to consider it as such. The basic difference between Keynesian Economics and Monetarist Economics is that one favors fiscal policy while the other favors monetary policy as a way for the government to manage the economy through the manipulation of aggregate demand." (08/26/11)

http://aynrkey.blogspot.com/2011/08/why-monetarism.html  

No Comments »

What happened to the mixed economy?

August 21, 2011
posted by

EconLog EconLog
by David Henderson  

"Open up any principles of economics textbook written between the 1950s and the early (and maybe even late) 1970s, and the odds are high that it will say that the United States has a mixed economy. One part of the mix, it will say, is free markets or capitalism. It's sometimes vague about the other part of the mix. ... But sometime in the 1980s, writers of economics textbooks -- and even many economists in popular articles -- lost some accuracy. They started saying that the U.S. has a free-market economy." (08/21/11)

http://econlog.econlib.org/archives/2011/08/what_happened_t_1.html  

No Comments »

The confidence fairy vs. the animal spirits — not really a fair fight

August 4, 2011
posted by

Independent Institute Independent Institute
by Robert Higgs  

"The humor columnist for the New York Times, Paul Krugman, has recently taken to defending his vulgar Keynesianism against its critics by accusing them of making arguments that rely on the existence of a 'confidence fairy.' By this mockery, Krugman seeks to dismiss the critics as unscientific blockheads, in contrast to his own supreme status as a Nobel Prize-winning economic scientist. The irony in this dismissal, as others, including my friend Donald Boudreaux, have already pointed out, is that Krugman’s own vulgar Keynesianism relies on a much more ethereal explanatory force for its own account of macroeconomic fluctuations -- namely, the so-called animal spirits." (08/03/11)

http://bit.ly/qRtw7Z  

No Comments »

Bloody Keynesians

August 2, 2011
posted by

Cafe Hayek Cafe Hayek
by Don Boudreaux  

"It’s as if a person who is bleeding to death because of a gunshot wound in his stomach is brought to a physician. The physician correctly realizes that the patient is losing massive amounts of blood and, also, correctly understands that such blood loss is dangerous to the patient’s health. So the physician prescribes massive infusions of blood, period If the patient doesn’t recover, the physician orders that the volume of blood-infusions be increased. If the patient dies, the physician will forever blame himself for not increasing the volume of blood-infusions even further." (08/01/11)

http://cafehayek.com/2011/08/bloody-keynesians.html  

No Comments »

How wage rigidity is special

August 2, 2011
posted by

EconLog EconLog
by Bryan Caplan  

"Both nominal wages and nominal housing prices are what economists call 'downwardly inflexible.' In most markets, falling demand swiftly leads to falling prices, and surpluses don't last long. But in labor and housing markets, market adjustment to negative demand shocks is far more reluctant. There are plenty of regulations that exacerbate the problem, of course. But the main cause in both cases seems to be psychological." (08/02/11)

http://econlog.econlib.org/archives/2011/08/how_wage_rigidi.html  

No Comments »

Keynes and anti-Keynes

July 20, 2011
posted by

EconLog EconLog
by Arnold Kling  

"What I call the textbook Keynesian model is one in which you think of everybody as working in a GDP factory, and the aggregate price of labor is fixed. (If you go to the graduate textbook model, you have prices that move, but too slowly, and it can have stickiness in output prices, not just the wage rate.) In terms of theoretical outlook, I would say that anyone who works with the GDP factory model and the textbook version of aggregate demand and aggregate supply is conducting the conversation in a way that is understandable to the Keynesian tradition. However, there are those on the far left and far right who do not like the GDP factory story and who see things as more complicated." (07/20/11)

http://econlog.econlib.org/archives/2011/07/keynes_and_anti.html  

No Comments »

The critical flaw in Keynes’s system

July 18, 2011
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Robert P. Murphy  

"As part of my Mises Academy class Keynes, Krugman, and the Crisis, I have reread large portions of The General Theory. In his masterpiece, Keynes erects an impressive framework on one crucial assumption: left to its own devices, the free market can get stuck in an equilibrium with very high unemployment. Although Keynes's whole edifice and critique of the 'classical economists' rests on this belief, he devotes surprisingly little time to supporting it." (07/18/11)

http://mises.org/daily/5464/The-Critical-Flaw-in-Keyness-System  

No Comments »

The trade deficit: Myth or catastophic reality?

July 14, 2011
posted by

Neal Reynolds Nuzcom
by Neal Reynolds  

"Free-market economists argue that there is no such thing as a trade deficit since all dollars spent overseas must eventually come back to purchase domestically produced goods and services, thus creating jobs in exchange for the ones that were lost due to the foreign purchases. But there is a huge exception to this rule that these economists overlook: The dollars that were sent overseas can instead be used to purchase our assets – assets which in many cases we didn't work for but inherited from the labors of previous generations ... or nature itself." (07/14/11)

http://tinyurl.com/62tldyy  

No Comments »

ABA: Always Be Advising

July 5, 2011
posted by

EconLog EconLog
by Bryan Caplan  

"I often annoy other economists by giving advice. 'Economists are supposed to describe behavior, not change it,' they insist. But they couldn't be more wrong. Economics is inherently advisory. Anytime an economist notices a discrepancy between (a) the world as it is, and (b) the world as people believe it to be, economics implies advice." (07/05/11)

http://econlog.econlib.org/archives/2011/07/aba_always_be_a.html  

No Comments »

The Chicago School versus the Austrian School

June 20, 2011
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Robert P. Murphy  

"People often ask me, 'How are the Austrians different from the Chicago School economists? Aren't you all free-market guys who oppose big-government Keynesians?' In the present article I'll outline some of the main differences." (06/20/11)

http://tinyurl.com/4xge8c8  

No Comments »

Intellectual inertia and Keynesianism

June 13, 2011
posted by

Daily Anarchist Daily Anarchist
by Sima Qian  

"Anarchists face many challenges establishing a state-free society. One of the main challenges we face is the fact that an idea that is widely held will continue to be widely held. This intellectual inertia causes false, pro-state ideologies to be established and propagated long after they have been disproved. An excellent example of this is Keynesianism, which is used to justify some actions of the state. It was exploded by the stagflation of the ‘70’s, but it is still the most taught macroeconomic theory." (06/13/11)

http://tinyurl.com/3dxlpxw  

No Comments »

Do we need a weak dollar?

June 2, 2011
posted by

Ludwig von Mises Institute
by Robert P. Murphy  

"Last week I testified before a Congressional subcommittee on the Fed's role in rising gasoline prices. All of the economists on the panel agreed that oil prices were rising (partly) because of the dollar's fall against other currencies. However, Dean Baker — prominent Keynesian pundit and codirector of the Center for Economic and Policy Research — testified that the dollar's fall was inevitable, and even a good thing in light of the US trade deficit. At the time, I knew I disagreed with Baker, but I didn't get a chance to explain why." (06/02/11)

http://mises.org/daily/5344/Do-We-Need-a-Weak-Dollar  

No Comments »

What conservatives ignore in Adam Smith’s message

May 31, 2011
posted by

Christian Science Monitor
by Louis Rene Beres  

"Through capitalistic modes of production and exchange, therefore, reasoned Smith, an inextinguishable social inequality might still be reconciled with broad human progress. But today’s conservative defenders of Smith usually ignore, either deliberately or unwittingly, the full depth of his rather complex thought. A system of 'perfect liberty,' as Smith called it, could never be based upon any encouragements of needless consumption. Instead, he argued, the laws of the market, driven by competition and a consequent 'self-regulation,' strongly demanded a principled disdain for all vanity-driven consumption."

http://tinyurl.com/4363xp5  

No Comments »

But there ARE free lunches!

May 31, 2011
posted by

Foundation for Economic Education Foundation for Economic Education
by Sandy Ikeda  

"Suppose I’m in the business of making lunches. Let’s say that with my current know-how I can make a maximum of 20 lunches a day by using two units of labor and four units of capital. One day I discover a way to make two lunches of the exact same kind, at least from the perspective of my customers, with the same amount of inputs that it previously took to make one. In other words, before that fateful day I was selling lunches inefficiently; I was producing only half the lunches that I could have been. Discovering that inefficiency means I can create 20 additional lunches." (05/31/11)

http://www.thefreemanonline.org/headline/but-there-are-free-lunches/  

No Comments »

Economic analysis and the Great Society

May 26, 2011
posted by

Independent Institute Independent Institute
by Robert Higgs  

"Although the Great Society should be understood as primarily a political phenomenon — a vast conglomeration of government policies and actions based on political stances and objectives — economists and economic analysis played important supporting roles in the overall drama. Even when political actors could not have cared less about economic analysis, they were usually at pains to cloak their proposals in an economic rationale. If much of this rhetoric now seems to be little more than shabby window dressing, we might well remind ourselves that the situation in this regard is no better now than it was then." (05/26/11)

http://independent.org/newsroom/article.asp?id=3064  

No Comments »

Boombustology: A review

May 25, 2011
posted by

Foundation for Economic Education Foundation for Economic Education
by Warren C. Gibson  

"Most macroeconomists see the boom-bust cycle as an unsolved problem. Like physicists in search of a Grand Unified Theory, they long for a model that accounts for all the major aspects of the business cycle. Perhaps they are hampered by looking through the wrong end of a telescope. Mansharamani uses not just one but five 'lenses' to examine the subject." (05/25/11)

http://www.thefreemanonline.org/headline/boombustology-a-review/  

No Comments »

Free Banking and the Structure of Production: A Contrast of Competing Banking Systems

May 24, 2011
posted by

Libertarian Papers
by Dan Mahoney  

"In this paper we extend an argument originally developed in Hulsmann (2009) to analyze changes to the structure of production that occur when the demand for money changes." [abstract -- full paper available as PDF or MS Word download] (05/23/11)

http://libertarianpapers.org/2011/14-mahoney-free-banking/  

No Comments »

Mr. Smith Goes to Public Choice

May 22, 2011
posted by

EconLog EconLog
by David Henderson  

"I woke up early Friday morning and, rather than turning on ESPN, which is my wont, I surfed movies and found that 'Mr. Smith Goes to Washington' had started only a few minutes earlier. Once I start watching that movie, I'm hooked and I hang in for the whole thing. What struck me this time, which was probably about my third or fourth time, was how well Frank Capra nailed it on some of the most important things about public choice, things that I talk about in class when I teach a segment on public choice." (05/22/11)

http://econlog.econlib.org/archives/2011/05/mr_smith_goes_t.html  

No Comments »

Our Sponsors




Making a living off your Drupal site?

Drupal Managed Hosting

Fed up with Maintenance and Hosting companies?