while stressing the fact that most of them occurred in countries whose economic policies were the least coherent. His historical analysis is most refreshing and Even fiscal policies have been only partly effective in a context of an industrial policy that has prevented agents from innovating by themselves. DeRosa points out, quite rightly, that shareholders have
the phenomenal progress we have seen are free markets and openness. The freedom to innovate, experiment, create and share must come with the right incentives. For to finance productive investment and allow the economy to grow, while efficiency, innovation, and technology allow us to be more productive and receive more and better
as a result of deregulation, advances in information technology and financial innovation. The pace of financial development and innovation has markedly increased Let me focus on the latter which are pertinent for the conduct of monetary policy. As a result of financial innovation and the introduction of new financial
and 1950s. The 1920s were also a time of widespread dissemination of technological innovations. The automobile was just coming into mainstream use. In 1914, there were did. During this time and during the 1960s, there was also great confidence in Fed policy and the long-range planning abilities of business. Another factor cited as at any time.” In addition to this factor, there is the influence of monetary policy. The Fed, the GSEs, the banks, government guarantees, and other credit
since their balance sheets are in good shape. Plosser attributes this to financial innovations (financial engineering) in the last 10 to 20 years that have enabled crunch. The deflation of the bubble is the result of the Fed’s boom-bust monetary policies. Here is why. We define a bubble as activity that has emerged on the back of the loose monetary policy of the central bank. In the absence of monetary pumping this type of activity
consumer preferences. In view of the Austrian emphasis on inflationary monetary policy as the primary cause of the business cycle and the current financial crisis in part of the original note.) One kind of “good” inflation typically results when innovations and changes occur that permit people to economize on the amount of money call “cash-economizing” inflation tends to occur as a result of any financial innovation, including the invention of money-market mutual funds, ATM machines,
invest in assets that may benefit from a Democratic presidency judging by the main policies announced throughout the campaign. The first risk for investors is to make significant bets on radical changes of policy when the balance of power in the House and Senate may inhibit many of the of checks and balances, the control of the Senate, and the diversification and innovation of US entrepreneurs make it almost impossible to believe that the radical
in usage in the United States over the last six years. It represented a new and innovative way to extract hydrocarbons from rock formations deep underground. Many wells proves too expensive. If not for the six years of Zero Interest Rate Policy (ZIRP) and several rounds of Quantitative Easing (QE) from the Federal
by a much lesser amount that that of the larger ECB, while the Bank of Japan’s policy of maintaining rates at or near zero for all these yeas has also exerted an somewhat anachronistic. Thanks to reduced reserve requirements and technological innovations (such as sweep accounts), US banks actually support $1.3 trillion of M1
The outrageous talk of dividing Microsoft into three parts would have to end, so innovation and investment in the high-tech sector could proceed apace. But given the now also fails to treat the fundamental source of the problem, which is a monetary policy that has already been too loose. The last time that the money supply was
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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.