Donations
Please consider donating to help keep this blog running.
- Economic Thought on Facebook
Tag Archives: monetary
Krugman on Price Stability and Deflation
Krugman writes on disinflation versus deflation, and how the former is more frequent than the latter. He then suggests the Federal Reserve should temporarily drop its role of achieving price stability, instead focusing on full employment. I argue that the Fed should step off altogether. Continue reading
Posted in Theory
Tagged deflation, disinflation, Federal, inflation, monetary, policy, Reserve
Leave a comment
Everything Comes Down to Banking Theory
Robert Murphy is one of the more active Austrians involved in using the Depression of 1920 as a vindication of Austrian monetary theory. I decided to scour his blog in search of posts related to his research on the subject. … Continue reading
Credit as a Panacea
Just because Venezuela has a lower national debt than Greece doesn’t mean that Venezuela is in the clear of major economic trouble. Venezuela suffers from terrible inflation. Continue reading
Interesting Links
Some links for the week of 29 April 2010. Continue reading
Bernanke Risks Stirring the Pot
Ben Bernanke supports low interest-rates, but not government spending. Continue reading
The Stiglitz Report
On 27 April, Joseph Stiglitz’ “The Stiglitz Report” is released by the publisher. Continue reading
The Anatomy of Deflation
George Reisman explains “good deflation”, the virtues of a stable supply of money and what occurs with increases in productivity. This explanation, thoroughly “Austrian”, goes against conventional economic “wisdom”. Continue reading
Posted in Theory
Tagged Capital, Capitalism, deflation, efficiency, monetary, money, productivity, Reisman, stability, volume, Wealth
4 Comments
Hayek, the Business Cycle and the Financial System
In “Monetary Theory and the Trade Cycle” Hayek holds that the business cycle is caused by fractional-reserve banking, which is a natural credit organization formed out of the market. If this is the case, then it follows that economic cycles are an intrinsic part of capitalism. Continue reading
The Dangerous “Lessons” of 1937
The recession of 1937 provides a perfect case study to offer a vision of the future based on our current fiscal and monetary policies. It turns out that high government spending and intervention, mated with an inflationary monetary policy, caused the severe downturn of 1937. We are headed down that same road. Continue reading
Comment on Austrian Historicism
Two things Austrians must remember concerning the Great Depression and the Depression of 1920 are that monetary policy today is much different and there was no liquidity trap in 1920. Continue reading →