Why looking at the data without a theory cannot tell us much
byFor most so-called practical economists, information regarding the state of an economy is derived from the data. Thus if an economic statistic such…
Economics
Does the Friedman’s plucking model refute Mises’s boom-bust cycle theory?
byAccording to an article in Bloomberg on November 5, 2019, Milton Friedman’s plucking theory seems to be vindicated. According to Friedman there appears to…
Statistical misdirection
byEconomists who understand credit cycles expect the current cycle to enter its crisis stage at any moment. Furthermore, it combines with increasing trade tariffs…
Can easy monetary policies help to absorb idle resources?
byIt is widely believed that resources that are utilized in normal times to promote economic prosperity become underutilized during recessions. Some experts hold…
Leveraged Loans – History Rhyming?
byDespite three Federal Reserve rate cuts, leveraged loan credit quality is rapidly declining Covenant-lite issues now account for more than 80% of US$…
The Japanization of the European Union
byThe Japanization of the European Union[1] Introduction The topic of my lecture today is “The Japanization of the European Union.” I…
Targeting nGDP Targeting
byNot too long ago, we wrote about the so called Modern Monetary so called Theory (MMT). It is not modern, and it is not…
150 years of bank credit expansion is near its end
byThe legal formalisation of the creation of bank credit commenced with England’s 1844 Bank Charter Act. It has led to a regular cycle of…
The Perversity of Negative Interest
byToday, we want to say two things about negative interest rates. The first is really simple. Anyone who believes in a theory of interest…
Are we heading for a liquidity trap?
byWith interest rates in many countries close to zero or even negative some commentators are of the view that monetary policy of the…