Mises Wire

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

Booms and BustsGlobal Economy

Blog1 hour ago

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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The ECB Has Been Hiding Risk. They Won't Be Able to Do It Much Longer.

Global EconomyTaxes and SpendingMoney and Banking

Blog05/18/2020

The ECB can disguise the risk for a while, but the reality of the mounting debt and tax burden ahead is probably going to end in a debt crisis.

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Three Reasons Why the Eurozone Recovery Will Be Poor

Big GovernmentGlobal EconomyTaxes and Spending

Blog05/11/2020

The eurozone needs to understand that if it decides to increase taxes to address the rising debt due to the COVID-19 response, its ability to recover will be irreparably damaged.

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How Governments Broke the Oil Market

Corporate WelfareCronyism and CorporatismGlobal Economy

Blog05/05/2020

The oil industry became one of the main areas of malinvestment in the years of massive liquidity and low yields. This perpetuated excess capacity and kept inefficient companies unnecessarily alive.

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Central Banks and the Next Crisis: From Deflation to Stagflation

Global EconomyMoney and BanksMoney and Banking

Blog04/22/2020

When governments and central banks announce massive stimulus packages at the very beginning of a crisis, they bet on a speedy recovery and a return to normal as if nothing had happened. This is far from the case.

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The US Labor Market Will Heal Faster Than the European One

Global EconomyLabor and Wages

Blog04/16/2020

The key to recovering jobs quickly and efficiently is the combination of a flexible labor market, an attractive investment framework, and solid policies to preserve the business fabric of the country.

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Why the World Has a Dollar Shortage, Despite Massive Fed Action

The FedGlobal EconomyMoney and Banking

Blog03/31/2020

Can the US dollar lose its global reserve position? Sure it can, but not to a country that decides to commit the same monetary follies as the Fed. Most countries are trying to out-inflate the Fed. And that's good for the Fed.

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Governments Can't Fix This Economic Crisis They Caused

Global EconomyInterventionism

Blog03/27/2020

The US and the world will rise from this crisis. What the government has to do is allow it. The government is there to facilitate, not to pick winners and losers.

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