kat

kat

For More Jobs and Stability, Set the Economy Free

Опубликовано в Articles in English апреля 14 2014

John P. Cochran

April 10, 2014

The headline in the print edition of the Denver Post of an associated press story on the nomination of Janet Yellen highlights a quote from President Obama, "She understands the human cost when people can't find a job." This statement about then-new Fed Chair Yellen, which emphasizes Yellen's Keynesian-based commitment to the unemployment prong of the Fed's dual mandate, underlies why some economists feared that no matter how bad policy might have been during Bernanke's tenure, policy is likely to get worse rather than get better from a sound money perspective during a Yellen reign. Her empathy for the unemployed was clearly present in her remarks following her first official policy meeting which as reported by the Wall Street Journal "were a notable affirmation of her commitment to low rates until the economy is much stronger." She emphasized, "The recovery still feels like a recession to many Americans, and it also looks that way in some economic statistics." She then chose to support her remarks not with usual econ jargon and statistics, but "Ms. Yellen instead exhibited a personal touch ... by coloring her comments with experiences of three people who had struggled to gain full-time work."


Why Keynesian Economists Don’t Understand Inflation

Опубликовано в Articles in English апреля 07 2014

Frank Hollenbeck
April 7, 2014

The "monetary cranks" and "ignorant zealots" of old are back preaching salvation if only we had more inflation.[1] Keneth Roggoff and Fed President Charles Evans did not mince words, while others have been more circumspect. Christine Lagarde warns us of the "ogre of deflation" and the "risks" of low inflation, while others have been urging easier monetary policy to reduce the value of the yen or the euro. Of course, it's much easier to let this inflation tiger out of its cage than to get it back in. We have ample evidence that once inflation picks up, it's extremely difficult to control. Inflation in the US was 1 percent in 1915, almost 8 percent in 1916, and over 17 percent in 1917. It was about 2 percent in 1945 and jumped to over 14 percent by 1947. During the 1970s, inflation was mild in 1972, and climbed to 11 percent by 1974 and stayed at very high rates until Volker raised interest rates to 19 percent to tame the beast.


Per Bylund

April 3, 2014

A recently published article at The Week, titled "How can we unleash positive animal spirits into the economy? Change the narrative," provides a clear example of what's wrong with the perception of economics and why modern economic approaches, possibly aiming to amend the shortcomings "identified" by this perception, is at a loss of explaining anything important.


Libertarian Holism

Опубликовано в Articles in English марта 31 2014

Max Borders

March 26, 2014

My position is not incompatible with urging that we try to extend our sense of "we" to people whom we have previously thought of as "they."
—Richard Rorty on solidarity

One day, my son Sid and I were looking at the various rocks in his collection. He was about six at the time. I used to get frustrated at that bucket of rocks. He'd put any old rock in there and find a new one practically every day. The collection got heavy.
"We have rocks coming out of our ears," I said. So I asked him about his collection, pointing out certain rocks to see why he liked them. Each time he would find some little detail—a color, or glint.


Why the Nostalgia for an Old Communist Economy?

Опубликовано в Articles in English марта 24 2014

Predrag Rajsic

March 21, 2014

There seems to be a resurgence of nostalgia for the "good old days" among the citizens of countries that were once known under the common name of Socialist Federal Republic of Yugoslavia. This article is dedicated to all of us former Yugoslavs, especially those who think that the Yugoslav economy during Tito's rule was built on a stable foundation. If we look at and analyze economic indicators, we have to admit that the idea of the robustness of the Yugoslav economy was an illusion and that the "well-being" that many former Yugoslavs are recalling with nostalgia was borrowed at the expense of future generations. These generations are now paying the bill for the collapse of the unsustainable economic system of socialist Yugoslavia, along with paying the bill for the destructive wars of the 1990s, and the interventionist economic policies of former Yugoslavia's successor states.


Ben Bernanke Gets His Reward

Опубликовано в Articles in English марта 24 2014

Christopher Westley

March 24, 2014

"Bernanke Enjoys the 'Fruits of the Free Market,'" or so we're told in a Reuters headline from March 4 about the former Fed chairman's 40-minute speech in Abu Dhabi for which he received, ahem, $250,000. In the Reuters author's defense, he was only quoting a DC lobbyist who was defending the amount, and added, Bernanke "will personally experience supply and demand."


Fiat Money and Business Cycles in Emerging Markets

Опубликовано в Articles in English марта 18 2014

Roger McKinney
March 14, 2014

After the stock market collapse of 2008 and a decline of 3.4 percent for U.S. GDP in 2009, investors rushed to stash funds in emerging markets (EM) where economies were growing at a 3.1 percent annual rate. But the US stock market fell in January of this year largely due to financial trouble in emerging markets. The economies of EM nations, such as, Brazil, Russia, India, Turkey, Thailand, and China, have deteriorated in part because of the withdrawal of US dollar investments from them. Here is a chart from the Institute for International Finance (IIF)[1] showing the capital flows to EM nations:


How Inflation Destroys the Wealth of Nations

Опубликовано в Articles in English марта 10 2014

Joseph T. Salerno
March 05, 2014

[Editor's Note: This article is adapted from Joseph Salerno's foreword to the new third edition of Brendan Brown's book Euro Crash: How Asset Price Inflation Destroys the Wealth of Nations.]

Brendan Brown is a rara avis — a practicing financial economist and shrewd observer of financial markets, players, and policies, whose prolific writings are informed by profound theoretical insight. Dr. Brown writes in plain English yet can also turn a phrase with the best. "Monetary terror" vividly and succinctly characterizes the policy of the Fed and the ECB (European Central Bank) to deliberately create inflationary expectations in markets for goods and services as a cure for economic contraction; the "virus attack" of asset price inflation well describes the unforeseeable suddenness, timing, and point of origin of asset price increases caused by central bank manipulation of long-term interest rates and the unpredictable and erratic path the inflation takes through the various asset markets both domestically and abroad.


Planning an Economy Is Not Elementary

Опубликовано в Articles in English марта 10 2014

Jim Fedako
March 06, 2014

In the absence of prices, could a central planner efficiently run an economy? Before you answer, I'll drop the Hayekian proviso that the planner be vile. Instead, I'll only ask you to consider a planner who is a soccer mom wanting to maximize happiness among all. Would you still answer in the negative?


Another Four Falsehoods About the Free Market

Опубликовано в Articles in English февраля 24 2014

Sandy Ikeda

As a follow-up to my two earlier columns on falsehoods about the free market (here and here), I wanted to cover some more falsehoods that I've heard again recently. I'm sure I'll have plenty of opportunities to add to the list sometime down the road.


Страница 4 из 19

 

 

Подпишись на новости в Facebook!