Other Schools of Thought

Displaying 11 - 20 of 1934

To Prevent Problematic Inflation, We Need More Production. Which Means There's Trouble Ahead.

InflationMonetary TheoryOther Schools of Thought

Blog05/25/2020

Price inflation is so difficult to predict, because there are so many moving parts: money supply, demand, money velocity, and supply of goods and services.

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Why Official Inflation Measures Don't Work

InflationOther Schools of ThoughtPhilosophy and Methodology

Blog05/23/2020

In theory, it is possible to adjust inflation measures to account for the many constant changes in prices resulting from changing demand, quality, and innovations. But it's essentially impossible to execute these adjustments accurately.

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Krugman: We Need More Unemployment—to Save Us from Unemployment

Booms and BustsLabor and WagesOther Schools of Thought

Blog05/19/2020

Paul Krugman is now claiming that reopening the economy and allowing people to go to work almost surely will cause a depression.

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How Government Spending Can Make the Debt Burden Look Smaller than It Really Is

Taxes and SpendingOther Schools of Thought

Blog05/07/2020

Governments can increase GDP numbers simply by spending more, and this can reduce debt as a percentage of GDP. But what if we calculate GDP using only private spending?

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Why Americans Don't Have Any Savings

InflationOther Schools of Thought

Blog04/15/2020

Central bankers think too much saving is a problem that must be solved with more money creation. But the real problem is the Keynesian-style fractional reserve banking system.

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What "Lender of Last Resort" Is Supposed to Mean

Other Schools of Thought

Blog04/06/2020

Modern central banks have already moved far beyond what was once considered the proper role for a central bank as a "lender of last resort." Now Keynesians and MMTers want to take things even further.

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Keynes and the Euthanasia of the Rentier

Financial MarketsCapital and Interest TheoryOther Schools of Thought

Blog04/04/2020

Over eighty years ago, Keynes condemned the rentier and welcomed his future disappearance. Following in his footsteps, politicians and central bankers today are ever closer to effectively bringing this about.

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Even When They're Wrong, We Can Learn From Understanding Others' Theories

Other Schools of ThoughtPhilosophy and Methodology

Blog03/20/2020

Learning the history of economic thought is important not because every economist has been right, but because we can learn from their mistakes.

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No, Technology Shocks Aren't Behind Recurring Business Cycles

Business CyclesInterventionismOther Schools of Thought

Blog03/19/2020

Finn Kydland and Edward C. Prescott (KP), the 2004 Nobel laureates in economics think that technological shocks can explain 70 percent of economic fluctuations in postwar US data. Unfortunately their quantitative methods are simplistic and ignore the real problem: central banking.

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The "Market Monetarists" and NGDP Targeting

Financial MarketsMonetary PolicyOther Schools of Thought

Blog03/10/2020

A relatively new challenge to the Austrian framework comes from the “market monetarists” and their endorsement of a central bank policy of “level targeting” of nominal gross domestic product.

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