Saturday, 18 November 2017

Monthly Archives January 2010

“China Cools Lending Pace”

Posted by Tom Duncan
January 29, 2010
in Blog

“China hopes cooling the pace of lending will keep its economy growing without creating inflation and overheating.” See the CNN video here. “China Cools Lending Pace” CNN, January 25, 2010.

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“The Fed’s Anti-Inflation Exit Strategy Will Fail”

Posted by Tom Duncan
January 28, 2010
in Blog

“Federal Reserve Chairman Ben Bernanke has explained his exit strategy to prevent future inflation. The Fed recently began to pay interest to banks on the reserves they hold in their vaults. Using this new tool, it claims the ability to get banks to keep the money instead of lending it out, thus containing the money […]

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A History of the Federal Reserve: 1913-1951

Posted by Tom Duncan
January 27, 2010
in Blog

“A history of the Federal Reserve is a history of the decisions made and the ideas that prompted them. The chapters that follow allow the participants to explain their action and the reasons for them, in their own words. These decisions produced very different results: a steep postwar recession in 1929-21, a period of stability […]

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“Federal Government Continues Its Money Monopoly”

Posted by Tom Duncan
January 26, 2010
in Blog

“Prices rise soonest, fastest, and highest where the money is being loaned out. During the realestate boom until 2007, much of the lending went to real estate, and land values zoomed up. The Federal Reserve money monopoly does not just inflate the currency, but causes distortions that end up in recessions such as the current […]

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“Freedom and Sound Money”

Posted by Tom Duncan
January 25, 2010
in Blog

“In all countries of the so-called ‘free world,’ money represents nowadays a government controlled irredeemable paper, or ‘fiat,’ money standard. The widely held view is that this money system would be compatible with the ideal of a free society and conducive to sustainable output and employment growth. To be sure, there are voices calling for […]

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Change Policy, Not Blame

Posted by Tom Duncan
January 22, 2010
in Blog

The Obama administration thinks it has found the cure all for its economic woes. The solution: regulate, restrict and play God in the economy. (Not exactly a new strategy for government.) In usual fashion, government regulations and Fed policies bring about unintended consequences, and the blame is pushed elsewhere. With the economy still limping, the […]

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“The U.K.’s Persistent Inflation Problem”

Posted by Tom Duncan
January 21, 2010
in Blog

“The U.K.’s economic policy puzzle just got harder. Inflation was expected to rise in December, but not by a full percentage point to 2.9%. That is well above market expectations of 2.6% and the Bank of England’s forecast of about 2.7%. It certainly puts the kibosh on any extension of quantitative easing beyond February, no […]

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“The Dynamics of Disintervention”

Posted by Tom Duncan
January 21, 2010
in Blog

“Examples of the move from piecemeal to comprehensive intervention are found in the 1930s after the collapse of social democratic policies in Weimar Germany and in the United States after the failed interventions of the Hoover administration. Both events heralded even more radical (and tragic) interventions. What we witnessed in 2008 in the housing and […]

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Cato Capitol Hill Briefing: What Caused the Recession?

Posted by Tom Duncan
January 20, 2010
in Blog

On February 5, 2010, our friends at the Cato Institute will be hosting a Capitol Hill Briefing, “Greed, Irresponsibility, or Policy Mistakes: What Caused the Recession?”. Go here for more information and registration. The deadline to register is Thursday, February 4, 2010.

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FEE Interview With Peter Boettke and Steven Horwitz

Posted by Tom Duncan
January 20, 2010
in Blog

Mike Van Winkle interviews Professors Peter Boettke and Steven Horwitz, co-authors of the recent FEE monograph “The House That Uncle Sam Built,” about what led to the financial meltdown and the Great Recession of 2008. Go here for more.   FEE Interview With Peter Boettke and Steven Horwitz Mike Van Winkle   First Principles, Episode 17 […]

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Interview With George Selgin

Posted by Tom Duncan
January 20, 2010
in Blog

“I use the term to mean laissez-faire banking — banking without any special government regulations or restrictions. Like free trade, it’s an ideal concept. It doesn’t refer to any specific or actual banking system, although some, like Scotland’s in the early 19th century, came close. My own ideal version of free banking would have no […]

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“In What Respects Will the Information Age Make Central Banks Obsolete?”

Posted by Tom Duncan
January 19, 2010
in Blog

“Like a post office, a central bank does useful things. That fact that it does useful things does not make either institution efficient, at least not in its present-day form as a government agency. By “efficient” here I mean “better than the alternative.” Just as private firms can better deliver packages and letters, private institutions […]

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Fed Up

Posted by Tom Duncan
January 18, 2010
in Blog

“Rep. Ron Paul (R-Texas), the libertarian-leaning congressman and failed 2008 GOP presidential candidate, has been suspicious of the Federal Reserve since before first entering Congress in 1976. In a 1981 article that mentioned the then-obscure legislator, United Press International reported that Paul ‘has proposed abolishing the Federal Reserve, repealing laws which make the dollar legal […]

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“Denationalisation of Money”

Posted by Tom Duncan
January 15, 2010
in Blog

“In my despair about the hopelessness of finidng a politically feasible solution to what is technically the simplist possible problem, namely to stop inflation, I threw out in a lecture delivered about a year ago a somewhat startling suggestion, the further pursuit of which has opened quite unexpected new horizons. I could not resist pursuing […]

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The Fed Is Too Powerful To Be Unaccountable

Posted by Tom Duncan
January 15, 2010
in Blog

“Now is the time to examine the proper functions of the Federal Reserve System–especially those of the Board–and make systemic changes. The popularity of US Rep. Ron Paul’s bill to audit the Fed taps into a great pent-up frustration about the unaccountability of the very powerful institution. Independent socialist Bernie Sanders of Vermont is the […]

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Counterfeiting versus Monetary Policy

Posted by Tom Duncan
January 15, 2010
in Blog

“Congress is on a spending binge. With all the calls for bailouts, economic stimulus and other assorted handouts, there is a real risk of inflation in our future. If we do have a rapid inflation, it’s likely that Congress, as they did in the financial meltdown, will blame it on everybody except themselves. Before Congress […]

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Cato Institute’s Monetary Conference 2009

Posted by Tom Duncan
January 14, 2010
in Blog

Our friends at the Cato Institute hosted their 27th Annual Monetary Conference: Restoring Global Financial Stability on November 19th, 2009. Go here to find the list of speakers and listen to their thoughts on the subject.

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Inflation and Deficits

Posted by Tom Duncan
January 13, 2010
in Blog

“With the massive increases in federal spending, inflation is one of the risks that awaits us. To protect us from the political demagoguery that will accompany that inflation, let’s now decide what is and what is not inflation. One price or several prices rising is not inflation. Increases in money supply are what constitute inflation, […]

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Price “Stability” for Venezuela

Posted by Tom Duncan
January 13, 2010
in Blog

In something of a reversal of the usual government policies to keep prices high, the government of Venezuela is going to great lengths to keep prices low, even in the face of inflation. According to CNN, The Venezuelan bolivar currency, which had been fixed at 2.15 to the U.S. dollar since 2005, was devalued to […]

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“Inflation: The Silent Tax”

Posted by Tom Duncan
January 13, 2010
in Blog

“Inflation is a tax on financial assets. This tax is paid by those unlucky investors, corporations, and foreign central banks that hold financial assets denominated in the currency that is inflating. A simple way of thinking about inflation as a tax is to consider investing in a mutual fund. The fund manager might charge 1 […]

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“Sound Money and a Liberal Market Order”

Posted by Tom Duncan
January 13, 2010
in Blog

“Though circumstances and times change, the basic principles of economic progress and sound market order do not. There is no mystery about them. They involve sound money, low taxes, property rights, making it easy for businesses to be set up, and, once they are, not harassing them with excessive regulation and bureaucratic interference. And, of […]

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“Income During Inflation”

Posted by Tom Duncan
January 13, 2010
in Blog

“Even as the Dow sits above 10,000, the public remains justifiably anxious about the state of the economy. The Federal Reserve has worked overtime to convince the public that it has saved the economy from a meltdown, but with unemployment at a 26-year high and the dollar tanking, it’s a hard sell. What most people […]

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“Capitalism Needs a Sound-Money Foundation”

Posted by admin
January 13, 2010
in Blog

“Let’s go back to the gold standard. If the very idea seems at odds with what is currently happening in our country — with Congress preparing to pass a massive economic stimulus bill that will push the fiscal deficit to triple the size of last year’s record budget gap — it’s because a gold standard […]

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“Murray N. Rothbard and Jacksonian Banking”

Posted by admin
January 12, 2010
in Blog

An article by Leonard P. Liggio of the Atlas Economic Research Foundation.   Murray N. Rothbard was the consummate scholar in several fields. From my first meeting with Murray Rothbard, attending Ludwig von Mises seminar at New  York University, more than forty years before the sadness of his death, I knew him longest as an economic historian. […]

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“The Fed and the Crisis: A Reply to Ben Bernanke”

Posted by admin
January 11, 2010
in Blog

“Federal Reserve Board Chairman Ben Bernanke spent most of his speech to the American Economic Association on Jan. 3 responding to the critique that easy monetary policy during 2002-2005 contributed to the housing boom, to excessive risk taking, and thereby to the financial crisis. Many have expressed the view that monetary policy was too easy […]

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“The Roaring Twenties and the Bullish Eighties”

Posted by admin
January 8, 2010
in Blog

“There are significant parallels between the Roaring 1920s and the Bullish 1980s. Both decades were characterized by a policy-induced artificial boom that ended with an inevitable bust. The Federal Reserve had a hand in both episodes, keeping the interest rate artificially low in the first one and keeping Treasury bills artificially risk-free in the second. […]

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How the Gold Standard Worked, 1880-1913

Posted by admin
January 6, 2010
in Blog

“This essay reinterprets the gold standard by applying the monetary theory of the balance of payments to the experience of the two most important countries on it, America and Britain. Before explaining, testing and using the theory in detail, it will be useful to indicate a few of the ways in which accepting it will […]

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“Sound Money the Safeguard of Labor”

Posted by admin
January 6, 2010
in Blog

“This government is now on a gold basis; that is to say, the nation stands pledged to redeem all its debts or obligations in gold. This is not the result of arbitrary legislation on our part, but a necessity imposed by the demands of trade and commerce. Foreign purchasers of American products pay in gold, […]

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“Capital Theory, Inflation, and Deflation: The Austrians and Monetary Disequilibrium Theory Compared”

Posted by admin
January 6, 2010
in Blog

“It can be argued that two apparently divergent macroeconomic schools of thought that have persisted in the history of economics are both part of a larger theoretical view which is capable of meeting most of these criteria. The Austrian theory of the trade cycle as described by Ludwig von Mises (1912, 1966) and F. A. […]

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“Another Perspective on the Effects of Inflation Uncertainty”

Posted by admin
January 6, 2010
in Blog

This paper examines the effects of inflation uncertainty on real economic activityb y utilizing a flexible, dynamic,m ultivariatef rameworkt hata ccom-modates possible interaction between the conditional means and variances. The empirical model is based on a familiar identified vector autoregressive framework, modified to accommodate multivanate generalized autoregressive conditional heteroskedasticity Our empirical model is preferred to […]

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“The Cost of Inflation Revisited”

Posted by admin
January 6, 2010
in Blog

“Neoclassical treatments of inflation understate the costs associated with inflation, even at very low levels. A comparative institutions perspective that recognizes the epistemological properties of prices and the institutional process by which inflation takes place, reveals the costs of inflation to be both larger and more widespread than standard treatments suggest. This paper makes use […]

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“Stock Returns, Real Activity, Inflation and Money”

Posted by admin
January 6, 2010
in Blog

“There is much evidence that common stock returns and inflation have been negatively related during the post-1953 period. Zvi Body, Jeffrey Jaffe and Gershon Mandelker, Charles Nelson, and my article with G. William Schwert document negative relations between between stock returns and both the expected and unexpected components of inflation. These results are puzzling given […]

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