Good News Paul Krugman has declared a “better-than-Goldilocks soft landing” due to (his favored) measures of price inflation reaching two percent and real GDP growing at 3.3 percent. Bad News Credit card delinquency has doubled since 2021. Regional bank stocks fell over 10% after Powell’s FOMC press conference. The civilian labor force has fallen
Many are questioning the Federal Reserve’s political independence lately. A reporter asked about it at the end of Chair Powell’s FOMC press conference , and it also came up in Powell’s 60 Minutes interview : PELLEY: Your decisions inevitably are going to have a bearing on this year’s election. And I wonder, to what degree does politics determine
Silvergate Bank, Silicon Valley Bank, Signature Bank, and First Republic Bank fell like dominos in March–April 2023. The United States Treasury, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) intervened in an unprecedented way to stall the domino effect. They waived the FDIC’s $250,000 cap on insured deposits at the failed
Stock markets tumbled this morning when the January Consumer Price Index (CPI) data came in hotter than expected. If you are wondering what the connection could be, the answer is that higher-than-expected price inflation means a longer-than-expected wait for the Fed to cut its interest rate target. It’s clear that financial markets are addicted to
Murray Rothbard called Richard Cantillon the “father of modern economics.” While that title is often given to Adam Smith, Rothbard suggested that all the good things in Smith were first discovered by Cantillon or other pre-Smithian economists and that virtually all of Smith’s original ideas were “a significant deterioration of economic thought.”
Five days before the last Federal Open Market Committee (FOMC) meeting, Tho Bishop wrote about how the Fed and other agencies are preparing for a crisis without telling everyone they are preparing for a crisis. In his article, he showed how the Fed and the Office of the Comptroller of the Currency were working on a policy that would require banks
When Nvidia reported high fourth quarter earnings for 2023 in February 2024, it sparked a general rally in stock markets. Stock markets in the United States, Japan, and Europe jumped to all-time highs after a few days of slight declines. It seems strange for one company’s earnings call to have such a widespread effect, but many are saying that
Per Bylund has called for a new Methodenstreit in economics. He’s referring to the late-nineteenth-century debate between Carl Menger, representing the newly dubbed “Austrian School,” and Gustav Schmoller, representing the German Historical School. The Historicists derided Menger’s causal realism, in which the laws of economics are derived from
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.