The Ghost of Failed Banks Returns
byLast week’s failure in the US repo market might have had something to do with Deutsche Bank’s disposal of its prime brokerage to BNP,…
September, 2019
Price Controls Attack the Freedom of Speech
byWe increasingly live in a new “dark age” of economic ignorance, and even stupidity. Few things exemplify this trend as much as the call for price…
How fractional reserve banking contributes to increases in money supply
bySome commentators consider fractional reserve banking as a major vehicle for the expansion in the money supply growth rate. What is the nature…
How Is Negative Interest Possible?
byGermany has recently joined Switzerland in the dubious All Negative Club. The interest rate on every government bond, from short to 30 years, is…
Can boom-bust cycles emerge in a free market economy where gold is money?
byFollowing the Austrian Business Cycle Theory (ABCT), the boom-bust cycle emerges in response to a deviation in the market interest rate from the…
Friends of Freedom, Do Not Despair
byriends of freedom can easily become despondent when they look at what appear to be the ideological and political trends that fill the media…
The shape of the yield curve and the state of the economy
byOn Wednesday August 14 2019, participants in financial markets were shocked by the news that the differential between the yield on the 10-year…
Inflationary financing and GDP
byThis article demonstrates that only government borrowing in the US and UK drives GDP growth. This surprising conclusion is confirmed by long-run statistics. GDP…