Saturday, 18 November 2017

GDP

China: Money Matters

Posted by Gonzalo Schwarz
January 22, 2013
in Blog

By Steve H. Hanke Contrary to what the doomsters have been telling us, China’s economy is not on the verge of collapse. As the Wall Street Journal’s man in Beijing (and my former student), Aaron Back, reported: “China’s economic growth accelerated in the fourth quarter of 2012.” Indeed, China’s fourth quarter GDP growth rate came […]

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An Age of Illusionists

Posted by Gonzalo Schwarz
November 29, 2012
in Blog

Remember, all spending is a tax. It has to come from somewhere. It’s coming out of the value of your Dollar. by Steve H. Hanke Watching Barack Obama and Mitt Romney duel in the presidential campaign should have convinced the spectators that we live in an age of illusionists. Few of the assertions and conjectures […]

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Money: East vs. West

Posted by Gonzalo Schwarz
August 28, 2012
in Blog

By Steve H. Hanke A country’s money supply is made up of two distinct components. State money — the monetary liabilities of a central bank (typically referred to as base, or high-powered, money) — is one element, and is by far the smallest component of the money supply. The second and most important component of […]

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The Fed Has Forgotten Sound Money, And Now Just Manipulates Interest Rates

Posted by Gonzalo Schwarz
August 22, 2012
in Blog

by James Dorn While some members of Congress and Republican presidential hopeful Mitt Romney want to label China a “currency manipulator,” little is said about the Federal Reserve’s role as an interest-rate manipulator.  Interest rates are relative prices that should be freely determined in private capital markets, not manipulated by the central bank.  The Fed is […]

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The Cantillon Effect

Posted by Gonzalo Schwarz
August 7, 2012
in Blog

By John Aziz Expansionary monetary policy constitutes a transfer of purchasing power away from those who hold old money to whoever gets new money. This is known as the Cantillon Effect, after 18th Century economist Richard Cantillon who first proposed it. In the immediate term, as more dollars are created, each one translates to a […]

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Fiat Money Kills Productivity

Posted by Gonzalo Schwarz
June 27, 2012
in Blog

From Azizonomics: I have long suspected that a money supply based on nothing other than faith in government is a productivity killer. Last November I wrote: During 1947-73 (for all but two of those years America had a gold standard where the unit of exchange was tied to gold at a fixed rate) average family income […]

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Lies, Damn Lies, and Government Statistics

Posted by Gonzalo Schwarz
June 11, 2012
in Blog

Just counting something as a part of “GDP” doesn’t actually make it a “product.” by Peter Schiff Last week in an interview on CBS Network News, Economist Mark Zandi, the chief economist for Moody’s, unwittingly revealed a central error of the global economic establishment. Zandi has made a career out of finding the middle ground between republican and […]

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Problems Facing Every Monetary System

Posted by Gonzalo Schwarz
April 4, 2012
in Blog

by Kurt Schuler Readers of George Selgin’s post just below should be aware that there is a an extensive comment section about it, including a few of his own remarks, over at Marginal Revolution. Now, on to what I promised to discuss in my last post, some time ago. Every monetary system faces a number […]

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Problems Facing Every Monetary System

Posted by admin
March 30, 2012
in Blog

by Kurt Schuler Readers of George Selgin’s post just below should be aware that there is a an extensive comment section about it, including a few of his own remarks, over at Marginal Revolution. Now, on to what I promised to discuss in my last post, some time ago. Every monetary system faces a number of major […]

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Nonsense about NGDP Targeting

Posted by Gonzalo Schwarz
December 2, 2011
in Blog

by George Selgin December 1st, 2011 I meant to do so weeks ago, but I only just got around to reading the little flurry of posts concerning NGDP targeting that was set off by John Taylor’s critical remarks on the topic. And now, despite the delay, I can’t resist putting-in my own two cents, because it seems to […]

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Recovery versus Growth: The Broken Window Fallacy and the GDP Fixation

March 17, 2011
in Blog

Extreme events sometimes cause big shifts in the economic point of view of the market process. The recent financial crisis brought back into scene Keynesian economics as a way to cope with the depression and make the economy recover. The recent tragic events in Japan seems to have brought to surface once more the “Broken […]

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“Does Economic Growth Cause Inflation?” – Mises Daily

Posted by Tom Duncan
March 16, 2011
in Blog

“According to mainstream thinking, the stronger the monetary pumping is, the stronger the pace of spending — and consequently the stronger the monetary income and the so-called real economy is going to be. In short, in this framework more money means more spending and this leads to stronger economic growth. Contrary to this way of […]

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“Money Rules” – Scott Sumner

Posted by Tom Duncan
December 17, 2010
in Blog

“There is no laissez faire in fiat money. If the Fed holds the money supply constant, it will be changing the interest rate and the price level. And if it holds interest rates constant, it loses control over the price level and money supply. As a result, many economists now favor some sort of inflation-targeting […]

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