There are profound methodological differences between the Austrian and Chicago schools that lead to very different characterizations of the nature and function of the market economy. I was recently reminded of this by an article entitled “The Racist Premium Is Just One Way the Market Punishes Racism” by Andrew Moran. The point that Moran makes is basically correct. In certain circumstances taking race into account in market transactions does involve a cost to the one inclined to do so.

Back in August, Bloomberg interviewed Karen Petrou about her research on quantitative easing and the Fed’s policies since the 2008 financial crisis.

Walter Block has reached an amazing milestone. He is dedicated to his students, and I have often marveled at the way students throng around him whenever he is at Mises University. He is also one of the most prolific economists of our time. He often co-authors papers with students, and these now number 100 peer-reviewed contributions. For anyone else, to publish 100 peer-reviewed articles would be the achievement of a lifetime, but for him, this is only the number he has co-authored with students.  Congratulations to this great champion of liberty. 

This week the Trump administration announced it will giving a major gift to American corn farmers by expanding the sale of ethanol in the US.

As Eric Wolff of Politico reports:

“Only when the tide goes out do you discover who’s been swimming naked.” – Warren Buffett

Earlier this month, the US 10-year bond reached a yield of 3.2%, the highest since 2011. As inflation in the United States picks up, the economy grows well above consensus estimates and unemployment falls to the lowest level of the last fifty years, it is only normal that the Federal Reserve rate hikes are confirmed.

[Read this article in Italian.]

The Italian government has created another massive turmoil in European markets with its 2019 budget proposal.

With a huge increase in spending, it estimated a deficit of 2.4% for 2019 compared to its previous target of 0.8% and the 1.6% announced by the finance minister.