Money and BanksMoney and Banking
Real GDP does not measure the real strength of an economy, but reflects monetary turnover. Thus, the more money is pumped, the stronger the economy appears to be.
SubjectivismValue and Exchange
Prices are set by how much people value goods and services. And people value things based on what they think will improve their life and well-being.
Joseph Salerno discusses the Hoppean method of addressing economic controversies.
Given the Fed has never spotted a bubble in real time, why should anyone believe we aren't in one right now?
Though rent control is sold as a policy that is intended to help the poor, it has induced homelessness among the poor and lower middle classes.
Markets respond with price changes to eliminate money surpluses and money deficits.
Recessions emerge when the central bank reverses its loose monetary stance. But the seeds of recession were sown earlier by private lending practices that grew out of central-bank money creation.