Open Letter to Mercatus Center
Letter to Patrick Horan Program Manager for Monetary Policy Mercatus Center Via Internet Dear Mr. Horan and Mercatus: It just came to my attention…
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Nomination for the Board of Governors of the Federal Reserve
We read the news today that Judy Shelton has been approved by the Senate Banking Committee. This means that the full Senate can vote…
Read MoreHow to maintain a bull market after coronavirus
Everyone thinks they know the cause and effect of the Federal Reserve’s response to crises such as 2008 and 2020. The Fed prints money to buy…
Read MoreIt’s Only Paper
The response to the virus has added a new mechanism of capital consumption to the many we have documented over the years. Businesses…
Read MoreTargeting nGDP Targeting
Not too long ago, we wrote about the so called Modern Monetary so called Theory (MMT). It is not modern, and it is not…
Read MoreThe Perversity of Negative Interest
Today, we want to say two things about negative interest rates. The first is really simple. Anyone who believes in a theory of interest…
Read MoreA Wealth Tax Consumes Capital
It seems one cannot make a name for one’s self on the Left, unless one has a proposal to tax wealth. Academics like Tomas…
Read MoreHow Is Negative Interest Possible?
Germany has recently joined Switzerland in the dubious All Negative Club. The interest rate on every government bond, from short to 30 years, is…
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Obvious Capital Consumption
We have spilled many electrons on the topic of capital consumption. Still, this is a very abstract topic and we think many people still struggle…
Read MoreWhat They Don’t Want You to Know about Prices
ast week, in part I of this essay, we discussed why a central planner cannot know the right interest rate. Central planner’s macroeconomic aggregate measures like…
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