Thursday, 21 September 2017

Monthly Archives March 2010

“Unemployment and Inflation Inch Up in Europe”

Posted by Tom Duncan
March 31, 2010
in Blog

“The unemployment rate in the euro area inched up to touch double digits in February, while inflation accelerated more than economists had forecast, probably a result of higher food and oil prices, according to data released Wednesday. Eurostat, the European Union’s statistics agency, said that seasonally adjusted unemployment in the 16 nations that use the […]

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The Seigniorage Curse

Posted by Tom Duncan
March 31, 2010
in Blog

“The Seigniorage Curse appears to hollow out the economy by the following manner: First, the premium charged to holders of dollars becomes a new source of accrued, aggregate revenue. This extra capital flowing into the economy is initially seen as a global honoring of our economy’s strength, and innovation. But when innovation falters and less […]

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Obama’s Mortgage Plan Won’t Bring Relief

Posted by Tom Duncan
March 31, 2010
in Blog

“Alan Greenspan, Ben Bernanke, and the rest of the crew running economic policy somehow could not see the housing bubble as it grew to more than $8tn. It really should have been hard to miss. Nationwide house prices had just tracked overall inflation for 100 years from 1895 to 1995. Suddenly in 1995, coinciding with […]

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“Economists, Business Leaders Want Yuan to Appreciate”

Posted by Tom Duncan
March 30, 2010
in Blog

“Chinese economists and business leaders have begun to call openly for their government to allow the yuan to appreciate against the dollar, in a sign that the issue is contentious here, too, and not just a problem between the United States and China. President Obama has urged China to let the value of the yuan […]

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Politicising money lending is not the path to prosperity

Posted by Alex Chafuen
March 29, 2010
in Blog

“One part of Alastair Darling’s Budget that appears to have received little attention from the media is his plan for a ‘Credit Adjudication Service’. This new body, it appears, will provide an appeals process for small and medium businesses that have been denied credit by banks. Regardless of the fact that, according to the British […]

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“Break Up the Banks”

Posted by Tom Duncan
March 29, 2010
in Blog

“Big banks are bad for free markets. Far from being engines of free enterprise, they are conducive to what might be called ‘crony capitalism,’ ‘corporatism,’ or, in Jonah Goldberg’s provocative phrase, ‘liberal fascism.’ There is a free-market case for breaking up large financial institutions: that our big banks are the product, not of economics, but […]

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The Healthcare Question Revisited

Posted by Tom Duncan
March 26, 2010
in Blog

A few weeks ago, I wrote a piece on the effect the new healthcare bill will have on your money, namely, the inflation that will result when the new system begins to run over the budget. This week, I’d like to address a few of the reasons why I believe that the expenses will be […]

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Monetary Policy in a World of Uncertain Productivity Growth

Posted by Tom Duncan
March 25, 2010
in Blog

“This paper considers inflation forecasts for 2001 under two different assumptions about productivity growth. One assumption, the optimistic one, is that productivity growth has risen above its long-run historical average and that 2001 will see near price stability. The other, the pessimistic one, is that monetary policy itself has been a major factor influencing productivity […]

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Inflation

Posted by Tom Duncan
March 24, 2010
in Blog

“Inflation rates vary from year to year and from currency to currency. Since 1950, the U.S. dollar inflation rate, as measured by the December-to-December change in the U.S. Consumer Price Index (CPI), has ranged from a low of −0.7 percent (1954) to a high of 13.3 percent (1979). Since 1991, the rate has stayed between […]

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“Obama Pays More Than Buffett”

Posted by Tom Duncan
March 23, 2010
in Blog

“The bond market is saying that it’s safer to lend to Warren Buffett than Barack Obama. Two-year notes sold by the billionaire’s Berkshire Hathaway Inc. in February yield 3.5 basis points less than Treasuries of similar maturity, according to data compiled by Bloomberg. Procter & Gamble Co., Johnson & Johnson and Lowe’s Cos. debt also […]

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“Bailout Bonanza”

Posted by Tom Duncan
March 22, 2010
in Blog

“Sen. Chris Dodd’s latest bill to fix the financial system is another failure. After months of negotiation, he’s produced a “reform” of the regulatory system that simply fails to deal with the causes of the 2008 crisis — which nearly saw the collapse of the US banking system. Reform is urgently needed, but the senator […]

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One Currency Doesn’t Require “One Europe”

Posted by Judy Shelton
March 19, 2010
in Blog

 The creation of the euro was either the greatest historic achievement of the last century—or its worst delusion. Not to be glib, but the answer is both: The euro represents a magnificent step toward fulfilling money’s highest purposes—to serve as a medium of exchange, a unit of account, and a store of value—but it’s also […]

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“Placing our faith in economic oracles”

Posted by Tom Duncan
March 18, 2010
in Blog

“One of the sadder categories in the history of human misfortunes is the list of those things that are obvious, but wrong. By definition, if something is obvious, most people agree with it, and thus, it is likely to win the day – but lose the verdict of history. The Earth is flat – obviously. […]

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“Something Besides Money Growth Causes Inflation?”

Posted by Tom Duncan
March 17, 2010
in Blog

“Some economic phenomena can result from a variety of causes. A temporary increase in unemployment, for example, might be caused by a sudden, disruptive change in production technology, or in trade patterns, or in labor or tax laws; or it could be caused by natural disasters or wars, or by recessions due to monetary or […]

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“Giving the Fed New Powers Ignores History”

Posted by Tom Duncan
March 17, 2010
in Blog

“The Fed’s own origins are evidence for this point. It is usually argued that the Fed was created to avoid the banking crises that plagued the United States in the late 19th century. That is true to an extent. What it misses is that those crises were the product of the regulations of the National […]

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“Competitve Currencies, Legal Restrictions and the Origins of the Fed”

Posted by Tom Duncan
March 17, 2010
in Blog

“In the last several years, economists have produced numoerous studies examining both the theoretical operations and historical manifestations of unregulated banking systems. Recent examples of historical investigations are the studies by L. White (47), who explores the Scottish experience, Selgin (33) on China, and Timberlake (43), Gorton (12), and Mullineaux (20), all of whom examin […]

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“Sound Money: The Impossible Dream?”

Posted by Tom Duncan
March 16, 2010
in Blog

“Our gold standard money didn’t fail us in 1913; it was murdered. Did it deserve to die? What was its crime? It had provided us with nothing less than relative peace and prosperity over a span of 136 years. It had not only retained one hundred percent of its value, it had gained eleven percent. […]

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“More Muscle to Fed”

Posted by Tom Duncan
March 15, 2010
in Blog

“Mr. Dodd’s bill would allow the Fed to examine any bank-holding company with more than $50 billion in assets, and large financial companies that aren’t banks could be lassoed into the Fed’s supervisory orbit. This came after Treasury officials pushed Mr. Dodd to bring more companies under the Fed’s purview. Any financial company, from small […]

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The Global Debt Crisis

March 12, 2010
in Blog

Recent developments have clearly demonstrated that “there is no such thing as a Keynesian free lunch.” The grim story of fiscal crises afflicting major economies is something that should not be taken lightly. It could happen sooner than most people think if the governments of the US and other debt-ridden countries don’t get their fiscal houses in order.

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Getting to the Bottom?

Posted by Tom Duncan
March 12, 2010
in Blog

On Wednesday, March 10, a Wall Street Journal article announced that the Financial Crisis Panel will be convened in early April with Alan Greenspan as the center act. According to the article, “The hearing will focus on the explosion of subprime mortgages, and the complex securitizations that Wall Street engineered from those loans. And it […]

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“Gold and Economic Freedom”

Posted by Tom Duncan
March 11, 2010
in Blog

“An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense – perhaps more clearly and subtly than many consistent defenders of laissez-faire – that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and […]

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Trust, like reputation is hard to earn, but easy to lose

Posted by Tom Duncan
March 10, 2010
in Blog

“Trust is similar in its fragility.  At the individual level, of course, these two concepts (reputation and trust) are inter-related.  We trust those who have a trustworthy reputation, and we don’t trust those who are known to be untrustworthy.  Once bitten, twice shy, or fool me one time shame on you, fool me again shame […]

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“Monetary Policy and the Free-Market Economy”

Posted by Tom Duncan
March 10, 2010
in Blog

“Let me say first that I believe in the benefits conferred by the free market as strongly as anybody in this country: nobody, anywhere, has yet devised a way of organising economic activity which comes close to the free market as a way of efficiently producing the goods and services which people want. So what […]

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The Transmission Mechanism of Monetary Policy

Posted by Tom Duncan
March 10, 2010
in Blog

“Economists do not agree about how monetary policy affects the economy. Different observers weigh in different ways the various specific channels through which monetary policy works. Views diverge even about the monetary transmission process in individual industrialised nations, the subject of decades of theoretical and empirical research; the process in developing countries is still more […]

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Monetary Policy Operating Procedures

Posted by Tom Duncan
March 10, 2010
in Blog

“This work provides an overview of monetary policy operating procedures in emerging market economies. Most of the discussion reflects the situation in mid-1998. The emphasis is on general principles although in practice country-specific factors condition actual procedures. Yet there has been a certain convergence in monetary policy instruments and procedures in recent years, not only […]

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Honest Money

Posted by Tom Duncan
March 10, 2010
in Blog

“There is a debt crisis in the making. It is international. Every industrial nation on earth faces a crisis that could dwarf the crisis of the 1930’s. The banks of the world have done the bidding of the politicians, and they have loaned hundreds of billions of dollars and other currencies to the ‘less developed […]

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“Belongia on the Fed”

Posted by Tom Duncan
March 9, 2010
in Blog

“Michael Belongia of the University of Mississippi and former economist at the St. Louis Federal Reserve talks with EconTalk host Russ Roberts about the inner workings, politics, and economics of the Federal Reserve. Belongia talks about the role that power and politics play in Federal Reserve decision-making and how various Fed chairs used their power […]

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“Credit Crisis – The Essentials”

Posted by Tom Duncan
March 8, 2010
in Blog

“In the fall of 2008, the credit squeeze, which had emerged a little more than a year before, ballooned into Wall Street’s biggest crisis since the Great Depression. As hundreds of billions in mortgage-related investments went bad, mighty investment banks that once ruled high finance have crumbled or reinvented themselves as humdrum commercial banks. The […]

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How Does Obamacare Affect Your Money?

Posted by Tom Duncan
March 5, 2010
in Blog

Last August, Ramesh Ponnuru, senior editor for National Review magazine and a contributor to many leading newspapers such as the New York Times, the Washington Post and the Wall Street Journal, published a Time article on Obamacare and its paradoxes. Over the past few months, this article has lost none of its relevance on the current […]

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“The ‘Costs’ of a Gold Standard”

Posted by Tom Duncan
March 4, 2010
in Blog

“Any discussion of the costs of a gold standard and of the controversy that surrounds this issue is, by its very nature, a one-sided discussion. The comparison of alternative standards on the basis of costs will not be meaningful unless the corresponding benefits are brought into view. Spelling out the particular type of gold standard […]

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Teach Freedom Initiative in Philadelphia!

Posted by Tom Duncan
March 3, 2010
in Blog

Atlas is going to hold a Teach Freedom Initiative (TFI) is a half-day conference on sound money on April 9th, 2010, at the Sheraton Society Hill Hotel in Philadelphia, before the Philadelphia Society Meeting. The theme of the conference is “The Attack on Sound Money and Entrepreneurship: Threatening Liberty in America.” This mini-conference begins with […]

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Sound Money Goes to APEE!

Posted by Tom Duncan
March 3, 2010
in Blog

The Sound Money Project has secured a panel at the 2010 Association of Private Enterprise Education Conference in Las Vegas. Among the authors on this panel are Dr. Edward Stringham, Dr. Gerald O’Driscoll, Jr., and Atlas’s own Marius Gustavson, Leonard Liggio, and Alejandro Chafuen. The conference will take place April 11-13 at Caesar’s Palace. APEE […]

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“Inflation Alert”

Posted by Tom Duncan
March 3, 2010
in Blog

“The 1970s was a decade of stagflation — the concurrence of a rising inflation rate and stagnant economic growth. The U.S. economy has not now reached the double-digit inflation rate (almost 15% by 1981), or the 9% unemployment rate, experienced back then. But the early ’70s, not the decade’s end, offer the more ominous parallels […]

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“China’s Hidden Debt Risks 2012 Crisis”

Posted by Tom Duncan
March 2, 2010
in Blog

“By Shih’s count, China’s debt may reach 39.838 trillion yuan ($5.8 trillion) next year. His forecast for debt-to-GDP compares with an International Monetary Fund estimate for China of 22 percent this year, which excludes local-government liabilities. The IMF sees Spain at 69.6 percent, the U.S. at 94 percent, Greece at 115 percent and Japan at […]

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A Doomsday Cycle

March 1, 2010
in Blog

Economists Peter Boone and Simon Johnson think the economic system could be stuck in a “doomsday cycle”: “Over the last three decades, the US financial system has tripled in size, as measured by total credit relative to GDP. Each time the system runs into problems, the Federal Reserve quickly lowers interest rates to revive it. […]

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Why No Tea Parties in Europe?

Posted by Tom Duncan
March 1, 2010
in Blog

“I’ve been doing a little reading this morning about the Greek crisis and related problems in Europe. One take, and it makes sense to me, is that many European countries have such low fertility rates that even with some degree of immigration, they simply will not have the future population levels necessary to pay for […]

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