Prices

From Man, Economy, and State, narrated by Jeff Riggenbach.

What they don’t understand: aggregation, relative prices, interest rates, capital structure, money pumping, and regime uncertainty, writes Ro

We cannot eat money. We cannot wear money. We cannot live in money. Money can’t buy you love, writes Shawn Ritenour.

If it is true that prices are signals which enable us to adapt our activities to unknown events and demands, it is evidently nonsense to believe th

Lord Keynes was constantly worried that people were saving too much and consuming too little — thus the need for more and cheaper money to stimulate the economy. Mr. Bernanke is nothing if not a good Keynesian, and his low rates make even the savviest question whether to forgo consumption.

A Fed employee argues that inflation is harmless. I argue that it is a rip-off for everyone who uses dollars.

Is it really such a stretch to suppose that when the US government (and Federal Reserve) brings the economy closer to outright socialism — as with Hoover, FDR, Bush, Obama, and Bernanke  — that those very interventions hamper the economy?

It was the physiocrats who broke with centuries of sound economic reasoning and contributed to what would become, in the hands of Smith and Ricardo

Without a dynamic price mechanism — trademark of a money-based, capitalist society — there can be no calculation, and without calculation there can be no advanced division of labor. Our society would be no more advanced than it was during the age of barter.

Past expenses incurred during the production of a good are completely irrelevant to the determination of the current price of a good. The market price of a good is determined solely by the relative valuations of goods and money by the buyers and sellers of the good.