Debts, Bastiat and modern economics
byThere is a well-worn conundrum told about a stranger, who walks into the hotel in a remote, sleepy village in Mexico, and reserves a…
Economics
The importance of randomness
byThe greatest strength of a truly free market economy, where money is sound and does not corrupt prices, is the absence of cyclical action….
The World’s Central Banks Are Frozen with Fear
byBy Ryan McMaken 2016 was supposed to be the year that the Federal Reserve “normalized” its policies. As much as two years ago —…
Trade Deficits Don’t Matter – Unless Caused by Government
byIn 2016, the United States exported goods and services equal to $2.209 trillion, and imported goods and services with a market value of $2.712…
Expected Losses are Not Baked into the Risk Weights
byBy Tim Bush and Kevin Dowd On December 15th 2015 there was an interesting exchange on the Treasury Committee between Steve Baker MP…
Jeffrey P. Snider: Unfortunately An ‘Official’ End To The Rising Dollar Isn’t More
byTIC data confirms that “reflation” captured more than just pricing sentiment. It appears to have occurred in bank balance sheet activity, and related official…
The ‘Free Market Multiplier Effect’
byOne of the basic concepts taught in first-year university economics classes around the world is the intuitively powerful though regularly abused ‘multiplier effect’. The…
Trumped or Stumped? The tax cut, the debt ceiling and riding the gravy train
byA corporate tax cut from 35% to 15% will cost US$200bln/annum A Border Adjustment Tax could raise US$100bln/annum The boost to GDP growth is…
How magical is the Keynesian multiplier?
byFor most economists and financial commentators the heart of economic growth is the increase in the demand for goods and services. The view is…
Breaking the chain
by“Wherever there’s injustice, oppression and suffering, America will show up six months late and bomb the country next to where it’s happening.” From Give…