Volume 15, Number 4 (Winter 2012)
Austrian business cycle theory (ABCT) has focused on the effect of interest rates set below the natural rate, leading to unwarranted attempts by businessmen to make more elaborate roundabout structures than can be completed by the available foregone consumption. This distorting effect is the main theme of the Austrian capital-based theory of the trade cycle.
Volume 15, Number 4 (Winter 2012)
Volume 15, Number 4 (Winter 2012)
In response to Block and Barnett (2012), this paper clarifies some misunderstandings about the concept of transitivity and shows its relation to rationality, asynchronicity of choice, and indifference analysis. It is demonstrated that Block and Barnett, contrary to their self-interpretation, do not in fact attack transitivity but the assumption of stable preferences. It is argued that the stability of preferences assumption cannot be easily dismissed.
Volume 15, No. 4 (Winter 2012)
What defines a “good society” and how can we use finance to achieve it? Robert Shiller takes the former question as settled, and dedicates his new book Finance and the Good Society to the latter: what is wrong with modern finance, and how should it restructured to reach this ideal?
ABSTRACT: Bank clearinghouse associations provided critical emergency services to their member banks during times of crisis. However, these associations, and the New York City Bank Clearinghouse Association (NYCHA) in particular, also provided critical intra-day liquidity to the security settlement process of exchanges such as the New York Stock Exchange (NYSE) through a process termed overcertification.
ABSTRACT: This paper provides an empirical investigation of the role of monetary policy in the determination of interest rates and consumption as developed by capital-based macroeconomics and Austrian business cycle theory, where monetary dislocations caused by central bank action are key to boom and bust business cycles.
Volume 16, No. 1 (Spring 2013)
The author explores during a lecture that all antitrust regulation is economically inefficient and morally wrong and all of it—the laws and the enforcement agencies—should be thrown out. He states this because it’s right and because it’s true and because it’s always our obligation, regardless of the consequences, to speak truth to power .
ABSTRACT: The law of association as espoused by David Ricardo and generalized by Ludwig von Mises cannot directly convey what is at stake in exchanges involving specialization in uncertainty bearing. In this article we explain why the entrepreneurial function as conceptualized by Frank Knight and Mises does not fit in, and what other rationale for association is involved whenever specialization in uncertainty bearing takes place.
Over the last century America’s money—the dollar—has come to dominate the global monetary system. It is used not just by Americans, but is used in other countries, in the global black market, by importers and exporters, and is the primary reserve currency for central banks. This status is what the author rightly calls the “exorbitant privilege” because it confers numerous benefits to individuals, companies, and government. Collectively, it also includes the ability to consume beyond our ability to produce.
