Money and Banking

Deflation is not a matter of animal spirits or consumer expectations. It is the result of earlier creation of money "out of thin air" by central banks and commerical banks. Deflation is the natural result.

Central Banks and the fiat reserve dollar hegemony won’t cede their power to cryptocurrencies easily,  and they're now resorting to a return to precious metals to stave off the threat of individual monetary sovereignty, Bitcoin, and the digital revolution.  

Central banks' economic models repeatedly and incessantly over-estimate economic growth. We can only speculate as to their motivation.

Jerome Powell has lost his faith in a new surge in economic growth. So, it's back to endless stimulus to keep the current cycle going.

The "subsistence fund" — created by real savings — is the foundation of true economic growth. But it can be eroded and destroyed by creating money "out of thin air."

Assessing cryptocurrencies through a framework of "saleableness" may help us understand why some cryptocurrencies are chosen for speculation above others.

Bob reviews the contributions of Böhm-Bawerk, Fetter, and Mises, and explains interest from an Austrian approach.

Economic theory must have only one purpose — to explain economic activity. However, statistical methods are of no help in this regard.

Central banks contend they can avoid booms and busts by increasing the money supply the "correct" amount. They are bound to fail.

A important factor in wealth redistribution has been the increased participation of both financial and non-financial firms in financial markets.