The World’s Central Banks Are Frozen with Fear
By Ryan McMaken 2016 was supposed to be the year that the Federal Reserve “normalized” its policies. As much as two years ago —…
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Trade Deficits Don’t Matter – Unless Caused by Government
In 2016, the United States exported goods and services equal to $2.209 trillion, and imported goods and services with a market value of $2.712…
Read MoreExpected Losses are Not Baked into the Risk Weights
By Tim Bush and Kevin Dowd On December 15th 2015 there was an interesting exchange on the Treasury Committee between Steve Baker MP…
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Jeffrey P. Snider: Unfortunately An ‘Official’ End To The Rising Dollar Isn’t More
TIC data confirms that “reflation” captured more than just pricing sentiment. It appears to have occurred in bank balance sheet activity, and related official…
Read MoreThe ‘Free Market Multiplier Effect’
One of the basic concepts taught in first-year university economics classes around the world is the intuitively powerful though regularly abused ‘multiplier effect’. The…
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Trumped or Stumped? The tax cut, the debt ceiling and riding the gravy train
A corporate tax cut from 35% to 15% will cost US$200bln/annum A Border Adjustment Tax could raise US$100bln/annum The boost to GDP growth is…
Read MoreHow magical is the Keynesian multiplier?
For most economists and financial commentators the heart of economic growth is the increase in the demand for goods and services. The view is…
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Breaking the chain
“Wherever there’s injustice, oppression and suffering, America will show up six months late and bomb the country next to where it’s happening.” From Give…
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Business cycles are credit cycles
This article gets to the heart of why central banks’ monetary policy will never succeed. The fundamental error is to regard economic cycles as…
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Does the price of oil determine general increases in the prices of goods and services?
A very good visual correlation between the yearly percentage change in the consumer price index (CPI) and the yearly percentage change in the price…
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