Benn Steil: Mini Mac Trumps the Big Mac
The “law of one price” holds that identical goods should trade for the same price in an efficient market. But how well does it…
Italy Needs a Dose of Bugatti Capitalism
by Marcia Christoff-Kurapovna There is a peculiar intellectual and emotional revulsion that comes with reading about Italy’s endless cycle of economic and political woes…
Mish Shedlock: In Search of Elephant in Room, Fed Governors Come Up Empty
Fed Governor Jerome Powell says “Signs of excesses are ‘isolated’. Asset Prices ‘not broadly unsustainable’“. The Federal Reserve does not see “broadly unsustainable asset…
Bawerk.net: Chinese Philosopher Kings, Losing their Yuan FX Religion?
It took a while, but the world are slowly coming to grips with the simple fact that the red-suzerains in Beijing are not the…
Jeffrey P. Snider: One Small (But Important) View of ‘Dollars’ From Europe
Source: http://www.alhambrapartners.com/2017/01/03/one-small-but-important-view-of-dollars-from-europe/ Nothing says “fixed” quite like bureaucrats responding to a past crisis they did not foresee (and in the case of European bureaucrats, actively…
David Gordon on Mervyn King: Central Bankers Are Losing Faith in Their Own Alchemy
Mervyn King is the British Ben Bernanke. An eminent academic economist, who now teaches both at New York University and the London School of…
Bawerk.net: How to Invest in the New World Order
In our latest Toward a New World Order, Part III we ended by promising to look closer at investment implications from the political and…
Will A Stronger Dollar Cause a Trade War with Europe?
Markets have not been slow to see through the hollowness of the European Central Bank’s announced (on December 8) curtailment of the pace of…
Benn Steil: Is the Emerging Market Currency Plunge Really About Trade?
Emerging market (EM) assets have taken a beating since Donald Trump’s surprise election victory on November 8. EM bond prices are down 4.4 percent,…
George Selgin: Has the Fed been Holding Down Interest Rates?
Source: https://www.alt-m.org/2016/12/01/fed-holding-interest-rates/ ONCE UPON A TIME, when my twin brother and I were tots, our father convinced us that he could make a traffic light…