Inflation

Although not altogether “Austrian,” Leggett nevertheless anticipated several insights associated with Austrian economics and especially monetary theory.

Keynesians claim that government debt is no problem because “we owe it to ourselves,” as though owners of US debt don’t care if they are repaid or not. Taxpayers, who actually will pay the debt, are left out of the equation.

Keynesians claim that government debt is no problem because “we owe it to ourselves,” as though owners of US debt don’t care if they are repaid or not. Taxpayers, who actually will pay the debt, are left out of the equation.

Despite the real damage the Trump administration is doing to the economy, its cheerleaders in the Cabinet continue to insist all is well. This is beyond wishful thinking.

Despite the real damage the Trump administration is doing to the economy, its cheerleaders in the Cabinet continue to insist all is well. This is beyond wishful thinking.

Ryan McMaken welcomes Mises Institute Senior Fellow Alex Pollock, a longtime expert on real estate finance, for a discussion on how Fannie Mae, Freddie Mac, and the Federal Reserve have created a socialist housing market in America. But it's socialism for the rich, and the system has made housing much more expensive for ordinary people. 

Not all debt is equal. When lending comes from real savings, the economy benefits, but when it arises from government credit expansion, it usually ends in economic disaster.

Fed Chairman Kevin Warsh has raised the Fed’s discount rate—to the chagrin of President Trump—but it is doubtful Warsh’s actions will be effective against inflation.

The chalkboard is the test. When Nigerian traders start painting their prices again, the reform will have worked, and no statistical release will be needed to confirm it.

While the government tells us that inflation is down because the CPI says so, there is another metric that tells a different story: measurement by gold prices.