Paul Krugman owes much of his considerable reputation as an economic theorist to “new trade theory.”

Here is a forecast of Gross Domestic Product based on the Austrian notion of the money supply and its growth rate. Jeffrey Peshut shows that Real GDP peaks with a variable lag to the growth rate of the True Money Supply. In other words we should expect Real GDP growth to peak from 1 to 3 years after the True Money Supply growth rate peaks. He writes:

By Murray Rothbard [Editor’s Note: This is a Selection from “Nations by Consent:Decomposing the Nation-State”]

by Laurence Vance

The latest ruse of some conservatives to garner the sympathy, support, and votes of libertarians is to declare that they are “constitutionalists.” Although they are sometimes referred to as “libertarians” in the media, sometimes even portray themselves as “libertarian-leaning,” and get ecstatic when real libertarians describe them as “liberty-minded,” these conservative “constitutionalists” are not only not libertarian, they are not even constitutional.

Behavioral economics and its close cousin, neuroeconomics, have been all the rage in the last few decades. Behavioral economists claim to go beyond the naive assumptions of neoclassical economics by taking psychology (and neurophysiology) seriously, using laboratory experiments, brain scans, and other techniques to study how economic actors “really” behave under various circumstances.

Bernanke is absolutely savaged in the comments to this CNBC video detailing his $250K speaking fee (now that he has joined the “private” sector). This is a family blog, so we won’t reprint any of them here. But the comments show how laughably out of touch with reality our political/banking class really is. NOBODY believes the official story anymore. Central bankers are seen as deeply harmful, if not criminal.

Presented at the 6th Austrian Scholars Conferece, Auburn, March 24–26, 2000.

Space limitations for my “Labor Unions and Freedom of Association” Daily Article today required that some of the references to the clear understanding of the issues by individualists connected to the Austrian school of economics had to be edited out. But three of those contributions, from Auberon Herbert, Sylvester Petro, and Friedrich Hayek, are worth noting here.

Auberon Herbert, in his “The True Line of Deliverance, written over a century ago, wrote:

In this article published in the Journal of Business Ethics, Philipp Bagus, David Howden, and Amadeus Gabriel contend that fractional reserve deposit banking is impossible and illegitimate. Working paper version.