Mises Wire

A "neutral" interest rate cannot be observed through any statistical test or public policy. But central bankers are sure they can find it and use it to endlessly tinker with the economy.

If central banks had all respected a 1-2% floor to interest rates through the last decade how would economic recovery have taken place and what would have been the nature of the expansion?

The emergence of "catastrophe bonds" in recent decades suggests an interesting way that Climate Warriors could alleviate the presumed costs of climate change — assuming climate activists are willing to spend any of their own money on the problem.

In the short term, a central bank can drive up stock prices by lowering the interest rate. In the longer term, it could sap the strength out of an economy.

The New Deal invigorated a bureaucratic state which had already done much to limit the entrepreneurial opportunities of Americans of all racial and economic backgrounds.

Stated simply, gold-standard proponents seek a dollar that is widely trusted as a constant measure of value. Nothing more. Nothing less.

Attempts at stabilizing the economy distort economic signals and cause economic instability, rather than preventing it.

Dalio played the game, by the rules of the game. Now he appears to say, "I've got mine, let's change the rules."

Even though security might be a necessary condition for development, it is not a sufficient one.

Using Japan as a model, governments are steering us toward a worldwide zombie economy — but we're likely to end up with something that looks more like Argentina than Japan.