The euro is an inflationary fiat currency, but it’s apparently not inflationary enough for many profligate European governments that want their own local currencies so they can inflate even more, and use easy money to temporarily cover up many economic sins.
Pope Francis's two major writings as pope are marked by a relentless pessimism and a world view in which human institutions such as markets are constantly making life worse and worse. This view, however, is not supported by the facts.
The world's central banks have been pouring new money into the financial system, which has produced a dangerous amount of distortion to prices in the market. And what do we have to show for it? Economic growth is anemic, at best.
Opponents of secession and decentralization claim that secession is self-destructive because small states will find themselves defenseless in the face of military aggression. In fact, small states enjoy many advantages in wealth, flexibility, and decentralization that are lacking in larger, centralized states.
Governments don’t like it when citizens emigrate to escape high taxes and other government-imposed costs. Governments would much rather keep productive citizens and their money at home. Bigger countries find it’s much easier to keep us in.
Mathematical economic models have a poor record of making accurate predictions, which makes sense since human action cannot be quantified by numbers. On the other hand, an understanding of sound economics can help us make good qualitative predictions.
Japan finally joined the US and the EU in their grand 2-percent-inflation-forever experiment in 2005. Many Japanese politicians have benefited from this. Meanwhile, nothing has been done in Japan to actually help the economy defend itself against the next economic disaster.
All that is necessary for free trade to flourish is for governments to get out of the business of punishing people who import goods without government approval. We don’t need a system of government agreements and regulations like the Trans Pacific Partnership.
Many still maintain that the developing world is being exploited by free markets, and that the humane solution is more foreign aid. In fact, free markets are nowhere to be found in the developing world, and we find much poverty as a result.
The European Central Bank is continuing with its negative interest rate policy, but it's not having the desired effect. Instead, the central bank is just filling the void by buying up government debt with newly created money.
