Sunday, 14 February 2016
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    Targets With Arrows

    Expectations under growth and level targeting regimes

    February 9, 2016
    In general, I prefer a rules-based monetary policy to discretion, but not all rules are created equally. Today, I want to consider two types of nominal income targeting rules in the hopes of identifying their relative merits for anchoring long run expectations, enabling long run  and thereby promoting long run economic growth. 1) Nominal Income […]

    Steve Forbes speaks out on the Presidential race, Fed recklessness, and gold

    February 4, 2016
    The following is an exclusive interview with Mike Gleason, Director of Money Metals Exchange and originally appeared on the Money Metals Exchange page. To listen to the interview, click here.  Mike Gleason, Director, Money Metals Exchange: Today we have a tremendous treat in store for our listeners as we welcome in none other than Steve Forbes. I had the honor […]
    Man Drawing A Seesaw

    Austrian business cycle theory and monetary equilibrium

    February 3, 2016
    As Steve Horwitz has shown, the insights of Austrian macroeconomics and monetary disequilibrium theory can be combined to yield a powerful paradigm for understanding how monetary policy affects the economy.  Crucial to this synthesis is the neutrality of money.  Remember that money is neutral when it facilitates exchange, but does not distort the terms of exchange.  […]
    Us Dollar Versus China Yuan

    Central banks and foreign exchange markets

    February 1, 2016
    In addition to turmoil in common stock markets around the world, the early weeks of the new year have been characterized by changes in—and much hand wringing about—exchange rates between currencies. Prospects for changes in currency exchange rates were also much in the financial news a year ago, with considerable confusion about what was happening […]
    Green Energy Difficulties

    Economic headwinds: Big players, regime uncertainty and the Misery Index

    January 29, 2016
    Before we delve into the economic prospects for 2016, let’s take a look at the economies in the Americas, Asia, Europe and the Middle East/Africa to see how they fared in the 2014-15 period. A clear metric for doing this is the misery index. For any country, a misery index score is simply the sum […]

    Sound money isn’t what you think it is

    January 28, 2016
    Many people define sound money as being when a currency’s purchasing power is not declining, but stable. This isn’t quite right, so let’s drill down. Consider two relentless processes occurring in the economy. They are both happening at all times, but it will be easier to look at them separately. One is good, and one […]
    Crystal ball with money in hands

    What Austrian business cycle theory does not predict

    January 13, 2016
    Many economists who have broadly free market views on money are sympathetic to the Austrian theory of the business cycle (ABCT).  As developed in the early part of the 20th century by Ludwig von Mises and Friedrich Hayek, and further refined in recent years by Steven Horwitz and Roger Garrison, ABCT links the business cycle to […]

    Juan C. Cachanosky (1953 – 2015): See you on our next morning walk

    January 11, 2016
    These are likely the most difficult lines that I have had to write in a very long time, if not ever. Juan Carlos Cachanosky, my dad, passed prematurely on December 31st, 2015, at the young age of 62. Frank Sinatra was probably his favorite singer, and his version of “May Way” was probably his favorite song. He […]