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 […]Read More
Blogging by friends of Atlas and others who concerned with the issues at hand.
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 […]Read More
The Euro zone CPI data continues to show the rising trend we commented here (read). In January inflation rose by 1.8% year-on-year, the highest reading since February 2013. However, while inflation expectations rise, markets remain stale. The stock market is not showing any boost from this reflation trend. Why? Inflation is up mainly due to energy’s positive […]Read More
A price is an exchange ratio: you must give up a certain amount of one good in order to get another good. Barter economies have prices, which are expressed as ratios of the goods themselves. In money-using economies, prices are expressed in the economy’s medium of exchange, which frequently makes the medium of exchange the […]Read More
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.) […]Read More
This is the fourth (and, perhaps, final) post on Ken Rogoff’s The Curse of Cash. As summarized in an earlier post, Rogoff argues that the benefits of banning cash (e.g., preventing crime, enabling effective monetary policy) exceed the costs (e.g., a reduction in financial privacy). He does not attempt to estimate the benefits and costs […]Read More