Saturday, 24 June 2017
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    Money in Liberalism

    June 19, 2017
    One feature of a liberal society is that its institutions, and especially its formal institutions with coercive backing, are bound by a nondiscriminatory rule of law, and work to protect the sanctity of property and contract for all persons.  In such a society, the general laws of property, contract, torts, etc. govern the provision of […]

    Fed’s Balance Sheet, IOR, and Uncertainty

    June 13, 2017
    It seems likely that in the coming months monetary policy discussion will start focusing on the problem of shrinking the Fed’s balance sheet. A particular challenge of shrinking the Fed’s balance sheet is that of discontinuing the policy of paying interest on reserves (IOR). While at first sight it might seem that the IOR is […]

    The Central-Bank Trap: the Real Price of Cheap Money

    June 8, 2017
    This piece originally appeared in World Economic Forum At the time of writing, the pace of expansion of the main central banks in the world exceeds $200 billion per month. In fact, in the first four months of 2017, central-bank asset purchases have surpassed the $1 trillion mark, according to Bank of America Merrill Lynch. […]

    IRS Summons of Coinbase Undermines Privacy, Discourages Innovation

    June 7, 2017
    The IRS is expected to respond to a recent Congressional inquiry into its summoning records from Coinbase, a San Francisco-based digital currency intermediary, by June 7. The inquiry, sent by House Ways and Means Committee Chairman Kevin Brady (R-TX), Senate Finance Committee Chairman Orrin G. Hatch (R-UT), and House Ways and Means Oversight Subcommittee Chairman […]

    The Institutional Character of Money

    May 31, 2017
    On the one hand, money is the language of commerce; money prices are the very medium of economic experience. On the other hand, there seems to be a deeper reality behind the monetary economy. In this scenario, real resource constraints, as described by Walrasian general equilibrium or Misesian evenly rotating economy, ultimately place bounds on […]

    The Politics of Bitcoin

    May 26, 2017
    David Golumbia has a new book titled The Politics of Bitcoin: Software as Right-Wing Extremism. It has received less than stellar reviews from Duke University’s Mike Munger and Bitcoin Magazine’s  Giulio Prisco. So, perhaps I am just piling on. But pile on I must. Here’s the short version: Many see bitcoin as a clever piece […]

    The Regression Theorem: Practical Applications

    May 23, 2017
    In my last post, I offered a brief summary of the regression theorem and provided some historical context to explain why it is an important idea.  In this post, I will trace some practical applications of the regression theorem. Commodity monies can emerge naturally. The first practical application of the regression theorem concerns commodity monies—that […]

    The Regression Theorem: Summary

    May 19, 2017
    In the late 1800s, three economists working independently radically transformed the way we think about value. Classical economists had struggled to explain why water is typically much cheaper than diamonds, despite being more useful on the whole and, indeed, crucial to one’s survival. Then, William Stanley Jevons, Carl Menger, and Léon Walras offered an elegant […]