As a reaction to an extremely tight housing market, the government of the German capital of Berlin has introduced price controls on rents which took effect on June 18, 2019. For the next five years, rents cannot be increased. This interventionist measure, made by a coalition of center-left to left-wing parties, is yet another attempt in a series of failed attempts to interfere with the market. The current housing situation is the result of local, federal, and European interventionist policies.

Money supply growth inched up in May, rising slightly above March’s and April’s growth levels. But overall growth levels remain quite low compared to growth rates experienced from 2009 to 2016. March’s growth rate, for examples, was at a 12-year (145-month) low.

In May, year-over-year growth in the money supply was at 2.21 percent. That was up from April’s growth rate of 2.00 percent. May 2019’s growth rate was well down from May 2018’s rate of 4.19 percent. 

What does an economy do?

Modern economics suggests it is about [production] efficiency, and develops models for assessing the degree to which it is achieved and predicting outcomes assuming it. This is a fundamental misunderstanding that, when scratching on the surface, clearly is as impossible as it is undesirable.

Economy is about value creation: about getting more out of less.

On July 4th, Americans celebrate our Declaration of Independence. But we often give little thought to the uniqueness and importance of our country’s founding.

There is a lot of confusion about the term “free market economics.” It is not a matter of advocacy, but a description of what’s studied. Just like labor economics is not a matter of standing up for working class interests, but a study of how labor markets work.

We live not only in a time of fake news but also in the era of fake economic growth. The performance of the economies of the industrialized countries since 2010 is a prominent case of deceptive economic growth. This economic recovery is not the result of a strengthening of the productive forces of the economy, but is due to a massive expansion of liquidity. Central banks created a monetary avalanche that has gone mainly into the financial markets and has become a source of deception for investors. In real terms, the economy has not advanced very much since the financial crisis of 2008.

A softer increase in the personal consumption price index (PCEPI) adjusted for food and energy has likely prompted Fed policy makers to hint about a cut in the policy interest rate in the months ahead. The yearly growth of the PCEPI adjusted for food and energy, or the core PCEPI stood at 1.6% in April against 1.9% in April last year — strongly below the 2% so-called inflation rate target that was set by the Fed in 2012.

Jeff Deist recently penned a metaphorical comparison of Austrian economics to the punk rock bands of the 70’s and 80’s who composed, created, and played but were denied recognition because they were locked out by the music industry establishment. They developed a do-it-yourself ethic when it came to publishing and touring and promotion; they referred to their own music as unheard.