There is too little gold in the West
byWestern central banks have tried to shake off the constraints of gold for a long time, which has created enormous difficulties for them. They…
It’s time to end the cruel delusion of cheap money and reckless spending
bySteve Baker has written an article for today’s City A.M. calling for an end to the ‘cruel delusion of cheap money and reckless spending‘:…
The root of all evil
byThe FT blog entry dealing with the Pope’s recent apostolic exhortation is, as we might expect, a somewhat tendentious selection, archly culled from the…
Today’s wealth destruction is hidden by government debt
byStill unnoticed by a large part of the population is that we have been living through a period of relative impoverishment. Money has been…
Life, but not as we know it
by“We have the best government that money can buy.” – Mark Twain. It says a lot about the financial establishment that the most revelatory…
Economics – orthodox and heterodox
byIn 2008 as The Great Moderation came to an end, Queen Elizabeth II asked Mervyn King “Why did no-one see this coming?” Her Majesty…
Cooperation between central banks
byZerohedge recently drew attention to the growing level of foreign bank cash deposits, tucked away at the bottom of the Fed’s H.8 statement. Foreign banks’…
Where she stops nobody knows
by“No warning can save people determined to grow suddenly rich.” – Lord Overstone. We have seen a confluence of events that suggests we may…
Output gaps and heterogeneity
byWhat shape is the Short Run Aggregate Supply (SRAS) curve? The question might sound tediously esoteric but it is, in fact, central to current…
Bubbles and central banks – is there a connection?
byAccording to the popular way of thinking, bubbles are an important cause of economic recessions. The main question posed by experts is how one…