Short sellers are no more self-interested than others in financial markets. They improve the information incorporated in market prices that we all rely on to improve social coordination, as we seek to make the best of a world of unavoidable scarcity.
I have been covering the emerging trend of central banks “investing” their accumulated forex reserves in equity markets.
To conclude then, as long as the pool of real funding available to Americans is still growing, and as long as the growth momentum of liquidity is heading up, US financial markets will remain well supported regardless of the yen carry trade.
It’s one thing for a firm to guard its own secrets, and enforce those rules with internal sanctions.
We can thus conclude that it is irrelevant for the multiplier process whether the central bank targets the quantity of money or the interest rate. What matters here is that the central bank is always ready to accommodate commercial banks' expansion of credit out of thin air. Without the central bank's support the likelihood of a sustained multiplier process taking place is close to nil. Hence the notion of the money multiplier is not applicable to a truly free-market economy.
Ah, nothing focuses the mind that a good ol’ fashioned stock market sell-off.
In a previous post I discussed how Robert Samuelsson absurdly tried to attribute the tech s
Presented to the Auburn University Libertarians; Auburn, Alabama, on 17 February 2007.
There is a definite connection between fiat currencies and trade deficits.
