The Fed

Bubbles, as we have seen, result from deliberate "expansionary" policies by government authorities, yet Krugman always seems to treat them as being solely the products of private enterprise.

It shouldn't come as a surprise if it eventually turns out that the real danger is, like so often in the past, inflation rather than default.

Abuse of the GDP equation leads economists and pundits to blame savings and praise reckless consumption, to hate imports and love exports, and (in principle) to attribute a doubling in the flow of goods coming out of factories to a nonchange in the level of a nonexistent stock of inventory.

Recorded at Jekyll Island, Georgia; 27 February 2010.

Recorded at Jekyll Island, Georgia; 27 February 2010.

Presented by Ron Paul at the “Birth and Death of the Fed” conference at Jekyll Island, Georgia, 27 Febuary 2010.

Recorded at Jekyll Island, Georgia; 27 February 2010.

Recorded at Jekyll Island, Georgia; 26 February 2010.

Not all reforms are improvements. As we have seen, the 100-percent-reserve solution is ripe with unintended consequences.

Our analysis holds that the key reason for financial instability is not the repeal of the Glass-Steagall Act as such but the existence of the central bank.