Inflation
-
The Reserve-Currency Curse — WSJ
By John D. Mueller POLITICAL ECONOMY The Wall Street Journal Publication Date: September 4, 1986 Since 1971 the world has suffered two great inflations and three recessions. Hopes for a world-wide economic expansion have been interrupted once again, by an economic slowdown and the threat of a trade war. Will the world ever settle down to…
-
The Gold Standard: The Case for Another Look — WSJ
By SEAN FIELER AND JEFFREY BELL Washington’s elites are quietly preparing a post-election fiscal compromise that will fund much of President Barack Obama’s domestic spending agenda with huge tax increases. They aim to create a value-added tax and will argue that there is no alternative even though doing so will leave the United States resembling…
-
“The Political Economy of Crisis Opportunism”
“Like a river suddenly swollen by the collapse of an upstream dam, the ideological current becomes bloated by the public’s fear and apprehension of impending dangers and its heightened uncertainty about future developments. Bewildered people turn to the government to resolve the situation, demanding that government officials “do something” to repair the damage already done…
-
The German Miracle: Another Look
Earlier this summer George Soros and some leading Keynesian economists criticized what they regarded as Germany’s overly strict fiscal discipline. Yet Germany’s real output expanded at a robust 9% annual rate in the second quarter, while the U.S. economy grew at an anemic 1.6% rate. So is Germany now a role model for how to…
-
“The Optimal Degree of Discretion in Monetary Policy”
“How much discretion should the monetary authority have in setting its policy? This question is analyzed in an economy with an agreed-upon social welfare function that depends on the economy’s randomly fluctuating state. The monetary authority has private information about that state. Well designed rules trade off society’s desire to give the monetary authority discretion…
-
“Burry of ‘The Big Short’ Bets on Farmland, Gold After Profits on Subprime”
“Gold is also a favored investment as central banks issue debt and devalue their currencies, he said. Governments haven’t adequately addressed the causes of the financial crisis and may be sowing the seeds for future problems by borrowing, he said. In the U.S., lawmakers showed they didn’t understand how to prevent another crisis when they…
-
Is There a Government Bond Bubble?
“YES, there is a government bond bubble. And it’s huge. Uncle Sam and his counterparts in the EU and Japan are broke and are, almost surely, going to print vast quantities of money to cover their enormous spending obligations. The printing presses are already working full time. The Fed, for example, has increased the monetary…
-
Why QE Could Trigger a Collapse of the Dollar
“A week ago, the Federal Reserve initiated a new program of “quantitative easing” (QE), with the Fed purchasing U.S. Treasury securities and paying for those securities by creating billions of dollars in new monetary base. Treasury bond prices surged on the action. With the U.S. economy predictably weakening, this second round of quantitative easing appears…
-
“Treasure 10-Year Yields Near 17 Month Low”
“The Fed’s purchases today will be its second this week, after it bought $2.551 billion of notes on Aug. 17. The central bank plans to purchase about $18 billion of U.S. debt by the middle of September using the money from principal payments on its holdings of agency debt and agency mortgage-backed securities, according to…
-
“How the Market Creates Jobs, and the Government Destroys Them”
“By bringing about the business cycle, Federal Reserve money creation causes unemployment. Inflation not only raises prices, it also misallocates labor. During the boom phase of the trade cycle, businesses hire new workers, many of whom are pulled from other lines of work by the higher wages. The Fed subsidy to these capital industries lasts…
-
The Reserve-Currency Curse — WSJ
By John D. Mueller POLITICAL ECONOMY The Wall Street Journal Publication Date: September 4, 1986 Since 1971 the world has suffered two great inflations and three recessions. Hopes for a world-wide economic expansion have been interrupted once again, by an economic slowdown and the threat of a trade war. Will the world ever settle down to…
-
The Gold Standard: The Case for Another Look — WSJ
By SEAN FIELER AND JEFFREY BELL Washington’s elites are quietly preparing a post-election fiscal compromise that will fund much of President Barack Obama’s domestic spending agenda with huge tax increases. They aim to create a value-added tax and will argue that there is no alternative even though doing so will leave the United States resembling…
-
“The Political Economy of Crisis Opportunism”
“Like a river suddenly swollen by the collapse of an upstream dam, the ideological current becomes bloated by the public’s fear and apprehension of impending dangers and its heightened uncertainty about future developments. Bewildered people turn to the government to resolve the situation, demanding that government officials “do something” to repair the damage already done…
-
The German Miracle: Another Look
Earlier this summer George Soros and some leading Keynesian economists criticized what they regarded as Germany’s overly strict fiscal discipline. Yet Germany’s real output expanded at a robust 9% annual rate in the second quarter, while the U.S. economy grew at an anemic 1.6% rate. So is Germany now a role model for how to…
-
“The Optimal Degree of Discretion in Monetary Policy”
“How much discretion should the monetary authority have in setting its policy? This question is analyzed in an economy with an agreed-upon social welfare function that depends on the economy’s randomly fluctuating state. The monetary authority has private information about that state. Well designed rules trade off society’s desire to give the monetary authority discretion…
-
“Burry of ‘The Big Short’ Bets on Farmland, Gold After Profits on Subprime”
“Gold is also a favored investment as central banks issue debt and devalue their currencies, he said. Governments haven’t adequately addressed the causes of the financial crisis and may be sowing the seeds for future problems by borrowing, he said. In the U.S., lawmakers showed they didn’t understand how to prevent another crisis when they…
-
Is There a Government Bond Bubble?
“YES, there is a government bond bubble. And it’s huge. Uncle Sam and his counterparts in the EU and Japan are broke and are, almost surely, going to print vast quantities of money to cover their enormous spending obligations. The printing presses are already working full time. The Fed, for example, has increased the monetary…
-
Why QE Could Trigger a Collapse of the Dollar
“A week ago, the Federal Reserve initiated a new program of “quantitative easing” (QE), with the Fed purchasing U.S. Treasury securities and paying for those securities by creating billions of dollars in new monetary base. Treasury bond prices surged on the action. With the U.S. economy predictably weakening, this second round of quantitative easing appears…
-
“Treasure 10-Year Yields Near 17 Month Low”
“The Fed’s purchases today will be its second this week, after it bought $2.551 billion of notes on Aug. 17. The central bank plans to purchase about $18 billion of U.S. debt by the middle of September using the money from principal payments on its holdings of agency debt and agency mortgage-backed securities, according to…
-
“How the Market Creates Jobs, and the Government Destroys Them”
“By bringing about the business cycle, Federal Reserve money creation causes unemployment. Inflation not only raises prices, it also misallocates labor. During the boom phase of the trade cycle, businesses hire new workers, many of whom are pulled from other lines of work by the higher wages. The Fed subsidy to these capital industries lasts…
Newsletter
Liberty and prosperity
at your fingertips.
By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact