Monetary Theory

Artificial credit created by a deceptively low rate of interest leads to speculative bubbles.

Krugman. 2002. Calling for a housing bubble.

Suppose in 2007 you were handed a piece of paper and a pencil, and were asked, "Come up with a list of bullet points for how to generate severe stagflation in the years 2010 through 2019."

Wouldn't your list look pretty similar to what has already happened?

Austrian economists are not fooled, because they reject the idea of empirical data in the validation of theory in the social sciences.

"Such aggregates have little meaning, as all human action consists of striving for individual goals."

The usually sensible Larry White recently blogged a silly and petty comment on Hans Hoppe's Mises Daily Article "The Yield from Money Held' Reconsidered".

In holding money, its owner gains in the satisfaction of being able to meet instantly, as they unpredictably arise, the widest range of future contingencies.

If anything, all the rescue packages and all the massive pumping by the Fed has made things much worse as far as the underlying economic bottom line is concerned.

John Maynard Keynes often employed flowery language like “animal spirits” and “liquidity trap” to describe things he did no

A drastic turn to responsible economics is the only legitimate way to escape the deep rut Ireland finds itself in.