Why the Corporate Paradox of Thrift Isn’t Really a Problem
Corporate cost cutting sets the stage for future gains in profitability and productivity, and there is no resulting "paradox of thrift" requiring easy money policies to "fix" the problem.
Corporate cost cutting sets the stage for future gains in profitability and productivity, and there is no resulting "paradox of thrift" requiring easy money policies to "fix" the problem.
The task at hand is the study of the problems of the determination of prices and interest rates. This task requires a sharp distinction between money-certificates and fiduciary media.
We're told more government spending will get the economy back on track. But increasing government spending weaken the process of wealth creation.
There is only one way to strengthen the recovery: To reduce structural imbalances by regaining budgetary sanity and implementing serious measures to attract capital. To fall back into propagandistic optimism would be a mistake.
Thanks to politics, confirmation bias, and bad monetary economics, central banks have a lousy record when it comes to economic forecasts.
The 1920s featured political détente, debt liquidations by prior consumer price inflation, an introductory stalling of monetary inflation, a German economic miracle, and a broad-based technological revolution. The 2020s have none of these.
The 1920s featured political détente, debt liquidations by prior consumer price inflation, an introductory stalling of monetary inflation, a German economic miracle, and a broad-based technological revolution. The 2020s have none of these.
Let us begin with what CBDCs definitely are not: they are not a new kind of cryptocurrency akin to bitcoin.
Six hundred dollars, two thousand, or how about one million per person? How much money should a government give its people to get the wheels of commerce turning again?
The worst excuse of all is that “there is no inflation.” It’s like driving a car at 300 miles an hour on the highway, looking in the rearview mirror and saying, “we haven’t killed ourselves yet, accelerate.”