Sunday, 30 April 2017

Author Archives Nicolas Cachanosky

What the Gold Standard Is and Why Government Killed It

April 19, 2017

This piece originally appeared in Learn Liberty The gold standard is both a strongly advocated and vehemently opposed monetary regime. Both positions, however, usually rely on misconceptions on what the gold standard actually is and why it failed. Below, I will discuss (1) what the gold standard is, (2) what is not, and (3) why […]

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Against the War on Cash

March 27, 2017
in Blog

In recent years, economists and central bankers have been advocating moving away from cash transactions towards an economy relying fully on financial transactions. At prima facie, this seems to be a good idea. Using checks and financial transfers can be more secure; the fact that every transaction is recorded makes illegal transactions (drug deals, etc.) […]

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What interest rates really are and what happens when governments change them

February 6, 2017

This piece originally appeared in Learn Liberty By Nicolás Cachanosky  When you pay interest, what are you paying for? Interest rates are one of the most confused subjects in economics. What are they, really? And what is their role in economic crises like the housing bubble and crash of the 2000s? The first thing to […]

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The asymmetry of central bank power

November 10, 2016

For some time now, a lot of attention has been put on the Federal Reserve’s decision on whether or not to increase the federal funds rate target or to leave it unchanged at its current level. The health of the U.S. economy (and a significant part of the world economy) seems to depend whether or not the […]

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Natural rate of interest: Is it that low?

August 10, 2016

One of the open questions since the subprime crisis is whether or not the natural rate of interest is as low as the federal funds rate. The natural interest rate is the rate that equilibrates production over time. However, this concept is more subtle than output being equal to potential output– it also implies that production is distributed […]

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Austerity isn’t failing, big government is

July 18, 2016

Bill Emmott at Project Syndicate claims that austerity is failing—just look at the poor European recovery after the financial crisis and the weak Japanese economy. Austerity is not working and therefore it is time to turn fiscal and increase government spending. This is the core of Emmott’s argument. Don’t forget, however, that he considers the Eurozone […]

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