What the shape of the yield spread implies?
byA fall in the difference between the yield on the 10-year US T-Bond and the US 3-month Treasury bill into negative territory has…
In Defence of Free Markets
byWhy is it that no one defends free markets, and socialism, despite all the evidence of its failures, comes back again and again? Unsurprisingly,…
Being and Time (and central banks)
byPeople value present goods more highly than future goods. For instance, an apple available today is considered more valuable than the same apple available…
The problem with Modern Monetary Theory
byAccording to the Modern Money Theory (MMT), money is a thing that the State decides upon. Following the ideas of the German economist, Georg…
Chapter 6: America, Won and Lost.
byAfter the United States gained its independence from Britain, it became powerful in the world in two very different ways: as an idea,…
The Global Economy Desperately Needs Freedom
byHow many bureaucrats are there in the world? The global population currently numbers more than 7.5 billion people. Out of that number it is…
Changes in government deposits and money supply
byThe US debt ceiling suspension, signed in February 2018, expires at the beginning of March this year. Some commentators are of the view…
Capital Flows – is a reckoning nigh?
byBorrowing in Euros continues to rise even as the rate of US borrowing slows The BIS has identified an Expansionary Lower Bound for…
Don’t be so negative
by“FED’S WILLIAMS SAYS IN A DOWNTURN WE COULD CONSIDER QUANTITATIVE EASING, NEGATIVE RATES.” Tweet by Reuters’ Jennifer Ablan, reporting on a speech by…
Importance of model building in economics
byIn the natural sciences, a laboratory experiment can isolate various elements and their movements. There is no equivalent in the discipline of economics….