The NAIRU (Non-Accelerating Inflation Rate of Unemployment) with Multiple Monies
byThe Nonaccelerating Inflation Rate of Unemployment (NAIRU) is the lowest rate of unemployment at which the inflation rate will not increase because, if it…
Economics
Zero Hedge: The ECB Has Almost Run Out Of German Bonds To Buy
bySource: http://www.zerohedge.com/news/2017-06-06/ecb-has-almost-run-out-eligible-german-bonds-buy One month ago, when looking at the sudden change in ECB bond purchasing patterns, especially of German Bunds, we reported that the central…
How Long Can the Fed Keep the Boom Going?
byThe US bond market trades at a quite high valuation. For instance, the 10-year US Treasury bond presents a price earnings (PE) ratio of…
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…
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…