Time Preference, Interest Rates, and Stagflation
Strong increases in money supply result in an exchange of nothing for something, which weakens the process of…
Continue readingStrong increases in money supply result in an exchange of nothing for something, which weakens the process of…
Continue readingAs the pace of government spending increases, a situation could emerge in which the…
Continue readingBy the popular way of thinking, the determination of the prices of goods is summarized by means of supply and demand curves, which describe…
Continue readingFreeing the economy from central bank interference with interest rates and money supply will arrest the process of wealth destruction. This is going to…
Continue readingMore government and central bank stimulus policies are likely to further weaken the pool of real savings and place the economy on the path of…
Continue readingThe Great Depression of 1930s occurred because of the Fed’s loose monetary stance from October 1920 to August 1924, which undermined the…
Continue readingWhenever the monetary stance is loosened, it sets in motion an economic boom by means of the diversion of real savings from wealth generators to…
Continue readingTo prevent the emergence of bubbles one needs to arrest the monetary pumping by the central bank and to curtail the…
Continue readingChanges in money supply and liquidity are not the same thing…
Continue readingA pure gold standard is immune from boom-bust cycles, since on the pure gold standard an increase in the money supply does not trigger an…
Continue readingOn a gold standard, an increase in the money supply unbacked by gold constitutes an increase in the money supply out of “thin air”. In the modern world…
Continue readingProponents of the modern portfolio theory hold that diversification is the heart of investment. The key should be evaluation of the profitability and…
Continue readingIf money pumping can grow the economy, then why not pump plenty of it to generate massive economic growth?
Continue readingIn the natural sciences, a laboratory experiment can isolate various elements and their movements. There is no equivalent in the discipline of economics…
Continue readingA cut in the income tax rate while government outlays continue to increase will lead the government to impose greater burdens in the future…
Continue readingThe central bank’s paper certificates are fully backed by the bank certificates, which have the historical link to gold…
Continue readingThe heart of economic growth is the expanding pool of real savings. Monetary pumping destroys the flow of real savings and in turn…
Continue readingInstead of the government presenting us with “Stay Home” advice, we should be presenting them with “Do Nothing” advice. Here’s why…
Continue readingThe imposition of lockdowns to counter the spread of the infection from the coronavirus is likely to severely damage the real economy. As a result…
Continue readingThe government has no money of its own, and monetary pumping won’t help ailing businesses, but this will…
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