A few days ago Alexander W. Salter wrote an interesting post on the problem of optimal resource allocation during an Austrian business cycle. His argument is that the Austrian business cycle theory (ABCT) can be understood within “a framework of rational expectations and ‘equilibrium always’ modeling conventions.” The argument against the ABCT based on rational expectations is that if […]Read More
Commentaries by Atlas staff and those associated with the Sound Money Project.
In the past few years, most major central banks have failed to achieve the higher rates of inflation they claim to want. They tried both “quantitative easing” and “zero-interest-rate policies” with no success. Now there are press reports that in Europe and Japan they are considering “helicopter money.” It is not as easy to give […]Read More
On Tuesday, the Cato Institute hosted an excellent conference on Cryptocurrency: The Policy Challenges of a Decentralized Revolution. I had the pleasure of discussing the monetary challenges of cryptocurrencies in general and bitcoin in particular with George Selgin, Director of the Center for Monetary and Financial Alternatives at the Cato Institute, Perianne M. Boring, Founder […]Read More
One of the most interesting areas within the analysis of governance regimes is the literature on polycentricity. Polycentric governance systems are characterized by fractured and concurrent authority. In other words, in polycentric systems, power is decentralized, and there is no final authority that possesses what is typically thought of as sovereignty—the right to make final decisions, beyond which there is no […]Read More
This past week, The Association of Private Enterprise Education (APEE) held its annual conference in Las Vegas, Nevada. As always, it was a very interesting event and I would like to take this opportunity to encourage young scholars who are serious about academic research and interested in promoting economic freedom to attend. At the first monetary policy […]Read More
Most modern economists believe we’d be better off with an independent central bank. If the monetary authority were beholden to the fiscal authority, the latter could cover its expenditures via the inflation tax. But, in doing so, it would subject the economy to costly price hikes with no offsetting benefits in the long run. Experiences […]Read More