How fractional reserve banking contributes to increases in money supply
bySome commentators consider fractional reserve banking as a major vehicle for the expansion in the money supply growth rate. What is the nature…
Economics
How Is Negative Interest Possible?
byGermany has recently joined Switzerland in the dubious All Negative Club. The interest rate on every government bond, from short to 30 years, is…
Can boom-bust cycles emerge in a free market economy where gold is money?
byFollowing the Austrian Business Cycle Theory (ABCT), the boom-bust cycle emerges in response to a deviation in the market interest rate from the…
The shape of the yield curve and the state of the economy
byOn Wednesday August 14 2019, participants in financial markets were shocked by the news that the differential between the yield on the 10-year…
Inflationary financing and GDP
byThis article demonstrates that only government borrowing in the US and UK drives GDP growth. This surprising conclusion is confirmed by long-run statistics. GDP…
Take Shelter 2.0
by“The most terrifying words in the English language are: ‘I’m from the government and I’m here to help.’” Ronald Reagan. “When Nobel Prize-winner…
Inflationary financing and GDP
byThis article demonstrates that only government borrowing in the US and UK drives GDP growth. This surprising conclusion is confirmed by long-run statistics. GDP…
Why Keynes Believed Efforts to Fight Income Inequality Hinder Economic Growth
byhe economist John Maynard Keynes (1883-1946) famously said, “in the long run we are all dead.” He wasn’t saying we should ignore the long…
Serious advice
by“Given all this, what do MPs do all day? Media manipulation, not operational planning on priorities. “Unsurprisingly, most senior MPs in all three parties…
Deeply negative nominal rates are on their way
byGrowing evidence of a severe global recession is sure to provoke more aggressive monetary policies from central banks. They had hoped to have the…