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Scott Sumner’s Incredible Arguments on the Swiss Currency Peg

Friday, January 30th, 2015 by posted in Economics.
Swiss Monetary Base With Peg

Recently the Swiss National Bank (SNB) dropped the peg it had established in September 2011, holding the Swiss franc at 1.2 to the euro. Unlike the pegs of weaker, less trustworthy monetary authorities, the aim of the Swiss policy was

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I beg to differ…

Friday, January 30th, 2015 by posted in Economics, Politics.

Re: CAT CEO says strong dollar bad for US economy Here come US exporters, right on schedule, complaining that a strong national currency is bad for them and for the US economy. Not so. When a nation debases its currency

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In Defense of Uber’s Surge Pricing

Friday, January 30th, 2015 by posted in Capitalism, Economics, Regulation.
uber_pic

Reprinted from the Freeman The smartphone-coordinated ride-sharing company Uber has come under fire for charging “outrageous” prices during peak demand times. I will defend the general principle of “surge pricing,” which performs the vital social function of drawing forth supply

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Carl Menger: Pioneer of “Empirical Theory” Part 2

Thursday, January 29th, 2015 by posted in Banking, Capitalism, Economics, History.
Elephants-and-Figures-in-a-Courtyard-Fort-Agra

[This article is excerpted from chapter 4 of Mises: The Last Knight of Liberalism. Reprinted from Mises.org] The Austrian School and the Gossen School With just two books, Menger had put economic and social thought on completely new foundations. Principlespioneered

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Carl Menger: Pioneer of “Empirical Theory” Part 1

Wednesday, January 28th, 2015 by posted in Banking, Capitalism, Economics, History.
st-johns-market

[This article is excerpted from chapter 4 of Mises: The Last Knight of Liberalism. Reprinted from Mises.org] Introduction The problems and ideas that moved Ludwig von Mises in his early years were addressed by the work of four great economic

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A Graphical Introduction to the Austrian Business Cycle Theory

Tuesday, January 27th, 2015 by posted in Banking, Capitalism, Economics, Regulation, Uncategorized.
Bear_Stearns_in_CanaryWharf_London

A Graphical Introduction to the Austrian Business Cycle Theory By: Gaurav Mehra Twitter: @GMehra_ Email: gmehra@alumni.uwo.ca   For a pdf version of this article: Intro to ABCT – Final   Business cycles, simply put, are the fluctuations of economic growth

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Financial Myth Busting: The Bubble Economy

Monday, January 26th, 2015 by posted in Banking, Economics, Politics.
dawnbennett

This weekend, I had the pleasure to be a guest on the radio program Financial Myth Busting with Dawn J. Bennett. We discussed the inability or unwillingness of politicians and economists alike to learn from past mistakes, and the consequences

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All Hail the Tumbling Price of Gas

Monday, January 26th, 2015 by posted in Capitalism, Economics, Environment.
gas-prices-fluctuate1

Reprinted from the Freeman American consumers begin the new year with a beautiful gift: low gas prices. These days, you pay twice or three times as much for fancy bottled water from the convenience store as you pay for gasoline,

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My letter to the NY Times re: Not really a favorable market reaction

Saturday, January 24th, 2015 by posted in Banking, Economics.

Re: Stimulus for Eurozone, but it may be too little or too late Dear Sirs: Your analysis of the likely effect of the European Central Bank’s proposed massive quantitative easing program is full of economic fallacies that, unfortunately, masquerade as

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PhD-Standard Monetary Crack Up

Saturday, January 24th, 2015 by posted in Banking, Economics, History.

The hills are alive with the panic of central bankers. First there was the fallout from the Swiss National Bank’s decision to unshackle the Franc from the Euro. Then, how much Q Mario Draghi put with his E. It turns

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Get ready for negative interest rates in the US

Saturday, January 24th, 2015 by posted in Banking, Economics.

Re: Dollar rise puts Fed under pressure I predict that the Fed will start charging negative interest rates on bank reserve accounts, which will ripple through the markets and result in negative interest rates on savings at banks. I make

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Charlie Hebdo Goes Critical

Saturday, January 24th, 2015 by posted in Economics, Politics, Regulation.
france-attacks-charlie-hebdo

The murder of eleven employees of the Charlie Hebdo newspaper in Paris has grabbed international headlines. It was, indeed, an appalling act. Western media outlets went ballistic.  Politicians from around the world descended on Paris and locked arms in a

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China’s Unsustainable Growth

Friday, January 23rd, 2015 by posted in Banking, Capitalism, Economics.
central-bank-china-1

In November 2014, China’s central bank declared it will lower the interest by 0.4%. The modification is not large enough to imply a change of policy direction, however; it is still an effort to sour on the financial market and

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A Primer on Jobs and the Jobless

Thursday, January 22nd, 2015 by posted in Capitalism, Economics.
jobs

Reprinted from Mises.org With the economics of employment and unemployment constantly discussed on the business pages and political campaigns, let us turn our attention toward fundamentals and root out some fallacies. If the media tell us that “the opening of

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Thom Hartmann’s Bogus Tax History

Wednesday, January 21st, 2015 by posted in Economics.
reagan

I’ve seen some pretty crazy things from the Facebook page “U.S. Uncut,” but recently I saw their reprint of some “facts” from Thom Hartmann that had more than 60,000 shares. This particular billboard was so absurd that I felt compelled

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The U.S. Cannot Afford to be the World’s Police

Wednesday, January 21st, 2015 by posted in Economics, Foreign Policy, Regulation.
Cargo supplies are piled on the tarmac at the Ramstein U.S. air base in central Germany

Reprinted from the Press and Journal The recent shooting at the French satirical magazine Charlie Hebdo by Islamic extremists has reignited the debate on how to handle the threat of terrorism. The renewed talk is understandable. As horror extraordinaire H.P. Lovecraft

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The Rise of Capitalism

Wednesday, January 21st, 2015 by posted in Capitalism, Economics, History.
Reeve_and_Serfs

This article is excerpted from Liberty & Property, part 2 (2009). Reprinted from Mises.org The precapitalistic system of product was restrictive. Its historical basis was military conquest. The victorious kings had given the land to their paladins. These aristocrats were

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The Life and Works of Ludwig von Mises

Tuesday, January 20th, 2015 by posted in Economics, History, Philosophy.
MisesLibrary (1) teaser

Reprinted from The Independent Ludwig von Mises (1881–1973) was one of the most important economists of the twentieth century. Even if he had made no other contribution over a professional lifetime that spanned seven decades, his place in the history

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What Price a Planned Economy? Part 2

Monday, January 19th, 2015 by posted in Capitalism, Economics, Law.
painting2_teaser

Originally published in Contemporary Review of London, April 1938. Reprinted from Mises.org IV But if democracy had to abdicate only from the control of economic life, this might still be regarded as a minor evil compared with the advantages expected from

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The (Austrian) Economics of Gifts

Friday, January 16th, 2015 by posted in Capitalism, Economics.
gift

Gift-giving is a strange custom to most economists. A common observation is that, as people are generally better informed about their own tastes than others are, the most efficient gift is simply cash. But if people all gave cash, the

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