Wednesday, 28 June 2017

Monthly Archives May 2017

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 […]

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The Politics of Bitcoin

May 26, 2017
in Blog

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 […]

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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 […]

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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 […]

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Two Tales of Unintended Consequences of Monetary Policy – Tale 1

May 17, 2017

Even when a policy is successful in achieving its desired ends, we have to consider its unintended and unforeseen consequences, resulting from cumulative market adjustments to policy changes that make it hard to judge the overall outcome of a policy in our complex economy. The Federal Reserve and European Central Bank’s monetary policy responses to […]

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Is Money Really a Veil?

May 11, 2017

My previous post was a crash course on the role of prices in a market economy.  Importantly, prices are money prices.  The vast majority of the time, producers accept the medium of exchange as payment for goods and services, and post prices denominated in the medium of exchange, which also makes the medium of exchange […]

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