Booms and Busts

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An L-Shaped Recovery Is Not an Anomaly, It Is the Norm.

Booms and BustsGlobal Economy

Blog05/30/2020

The massive bailout of indebted sectors that already had overcapacity and were in process of obsolescence may also drive the largest wave of malinvestment in decades. If the previous recoveries came with poor wage and capital expenditure growth and high debt, the next one will likely be even...

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A Global Race to the Bottom: How Central Banks Are Responding to the COVID Crisis

Booms and BustsFinancial MarketsMonetary Policy

Blog05/21/2020

Now, more than ever, we're in uncharted waters when it comes to central banks and monetary policy. Economist Brendan Brown takes a look at where we are and what the future might hold for central banks' race to the bottom.

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Krugman: We Need More Unemployment—to Save Us from Unemployment

Booms and BustsLabor and WagesOther Schools of Thought

Blog05/19/2020

Paul Krugman is now claiming that reopening the economy and allowing people to go to work almost surely will cause a depression.

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How Central Banks and Lockdowns Are Making the Crisis Worse

Booms and BustsInflationMonetary Policy

Blog05/16/2020

After 2018, the US economy was already headed toward a recession. But bailouts and lockdowns have made things even worse.

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Ludwig von Mises’s "Circulation Credit" Theory of the Trade Cycle

Booms and BustsBusiness Cycles

Blog05/14/2020

The latest installment in the Understanding Money Mechanics series summarizes the theory of the business cycle originally published in 1912 by Ludwig von Mises and elaborated by Friedrich Hayek.

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How Bad Is It?

Booms and Busts

Blog05/13/2020

Crashes are fast, like that first hill on a coaster. Recoveries are not, for the simple reason that production is more difficult than destruction.

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How This Crisis Differs from the 2008–2009 Financial Crisis

Booms and BustsInflationFinancial Markets

Blog05/09/2020

In this crisis the money supply has already increased far more than during the last crisis. But it's hard to say when this will produce inflation because we're still in the midst of a demand shock and a collapse in oil prices.

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Money Pumping Won’t Fix What’s Wrong with the Economy

Booms and BustsMoney and Banking

Blog05/02/2020

The current bust has been made worse by previous periods of easy money, which destroyed the wealth creation that is critical to sustaining a growing economy.

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What the COVID-19 Crisis Means for Europe and the Eurozone

Booms and BustsMonetary Policy

Blog04/27/2020

It is fundamentally wrong to put the entire economy at the service of a single goal and to commit to a single solution. Human action always involves weighing up different goals and different means.

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This Bust Wasn't Caused by a Virus

Booms and BustsFinancial MarketsLabor and Wages

Blog04/24/2020

The COVID-19 panic may have sped up the beginning of this economic crisis, but the virus wasn’t the cause. The real cause of the crisis was the boom that came before it.

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