Monday, 24 April 2017

Author Archives Tyler Watts

What Happens when Uncle Sam’s Sugar Daddy Runs out of Canes?

Posted by Tyler Watts
February 13, 2013

The Wall Street Journal’s Real Time Economics Blog recently reported that, according to new CBO projections, the Federal Reserve will cease its annual “payments” to the US government by 2018. You’re probably wondering two things: 1. Why the heck would the Fed be funding the government—shouldn’t it be the other way ‘round? 2. How the […]

Read More

The Mutual Mower Association

Posted by Tyler Watts
August 6, 2012

by Tyler Watts Larry, George, and Steve all live next door to each other in the quiet town of Ayr. As respectable men about town, they all endeavor to keep their houses neat, especially their lawns. Currently only Larry has a mower. One summer day, right after Larry cuts his grass, George comes over and […]

Read More

The Essence of Central Banking

Posted by Tyler Watts
July 6, 2012

by Tyler Watts “In theory, there is no difference between theory and practice. In practice, there is.” –Yogi Berra In theory, central banks exist to do things like “promote economic stability” and “uphold the value of the currency.” If you consult any Federal Reserve official (or any mainstream economics textbook), the stated purposes of the […]

Read More

“I am not an Economist…”

Posted by Tyler Watts
June 1, 2012

“…nor am I a doctor. But here is a critique of a school of economic thought, along with an appendectomy!”     “Donny, you’re out of your element.” Fans of the cult classic film “The Big Lebowski” will recognize this line used by the neurotic Walter (John Goodman) to put the scatterbrained Donny (Steve Buscemi) […]

Read More

Cracks in the Fiscal Dam

Posted by Tyler Watts
March 22, 2012

by Tyler Watts I’ll admit it: we fiscal hawks are increasingly mystified that things haven’t blown up yet for Uncle Sam. The Fed has held interest rates at zero for almost 3 ½ years now, and the inflation rate hasn’t exploded—even though people are noticing price increases all around, Bernanke & company can still claim […]

Read More

The Euro (Double) Standard

Posted by Tyler Watts
February 20, 2012

The received wisdom in economic history places much of the blame for the Great Depression squarely on the shoulders of the gold standard. For instance, Berkley economist Barry Eichengreen states, “Far from being synonymous with stability, the gold standard itself was the principal threat to financial stability and economic prosperity between the wars” (Golden Fetters […]

Read More