Gary Galles has in this outstanding book shown how to apply basic economic principles: he can convey free market principles in a simple and memorable way; and he also has a detailed knowledge of the policies he analyzes.
The velocity of money does not have a life of its own. It is not an independent variable and it cannot cause anything, let alone offset the effect of increases in money supply on the prices of goods.
From the darkened cinema to the football field to the airport screening line, the US government inflated the actual threat of terrorism and the necessity of an aggressive military response.
Much talk about the central bank's policy centers on whether the target interest rate is above or below the "natural rate." Unfortunately, we will never know what the natural rate is.
