Neither Efficient nor Animally Spirited, but Eventually Adjusting: The Stock Market According to L.A. Hahn

Volume 15, Number 1 (Spring 2012)

ABSTRACT: The Efficient Markets Hypothesis (EMH) was dealt a fatal blow by the financial crisis of 2007-2009, out of which we have witnessed a revival of Keynesian conceptions of the financial markets. Exemplifying this trend is the rising influence of behavioral finance. But if EMH exaggerates the rational side of human nature, behavioral finance goes too far in reducing us to slaves of the emotions.

Five Erroneous Ways to Argue About Resource Economics

Volume 15, Number 1 (Spring 2012)

This paper examines several problematic aspects of George Reisman’s Capitalism: A Treatise on Economics , specifically, five problems in the economics of natural resources. I argue first, that Reisman’s work lacks sufficient grounding in economic theory. Second, his exposition neglects important arguments in the environmental literature. Third, it avoids problems of uncertainty, leading to a faulty theory of economic development.

Against Monetary Disequilibrium Theory and Fractional Reserve Free Banking

Volume 15, No. 2 (Summer 2012)

The theory of monetary disequilibrium, as espoused by Selgin (1988), White (1989), Horwitz (2000), and others, has been used to justify the issuance of fiduciary media under a system of fractional reserve “free” banking. The present paper examines this monetary disequilibrium theory and concludes that it contains numerous errors and logical fallacies. The foundational economic argument in favor of fractional reserve banking is invalid.

Review of Engineering the Financial Crisis: Systemic Risk and the Failure of Regulation by Jeffrey Friedman and Wladimir Kraus

Volume 15, No. 2 (Summer 2012)

Jeffrey Friedman and Wladamir Kraus attempt to separate the wheat from the chaff by sizing up these theories next to some hard facts. The result is enlightening. In what is one of the most anticipated books on the crisis, the authors are able to give a logically coherent story and put some tired theories to rest.

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