Higgs: Looking Beyond the Unemployment Numbers
Robert Higgs, in spite of his reservations about writing op-eds, has written a great one for the
Robert Higgs, in spite of his reservations about writing op-eds, has written a great one for the
People often ask today: if the Fed has created so much new money, why hasn’t it produced more inflation?
When the Fed creates masses of new money, it initially flows to Wall Street, which profits from it in a variety of imaginative ways, but from there its path is unpredictable.
The Fed inserted into the TARP bill in 2008 the authority to pay interest on bank reserves. Of course this interest is paid by creating even more new money, but it provides an incentive for banks to leave reserves idle.
In case you missed it, here is Bob Murphy explaining Obamacare on the Tom Woods show.
[From the Summer 2013 issue of The Quarterly Journal of Austrian Economics]
By Nicolay Gertchev
Today at The Street, Dana Blankenhorn writes that you shouldn’t let the Austrians at the Mises Institute harsh your buzz. Blankenhorn implores his readers to “Ignore The Doomsday Chorus” and observes:
What most of today’s Doomsday Chorus has in common is a devotion to libertarianism and to Austrian Economics, which holds that there are absolute rules about economic behavior that can be deduced logically, and that government is powerless against these rules. Rob