Our obsession with monetary stimulus will end in disaster
byThe following is a commentary I wrote for The Forum section of London business-paper City A.M. The link is here. It is now six…
Bank Run Incentive, Central Bank Bankruptcy, and The Fallacy of the Credit Theory of Money
by[Editor’s Note: this is from the World Dollar Foundation, and can be found here] Part 1: The Bank Run Incentive There is an incentive…
Back to the future
by“Sir, Arnaud Montebourg, the former French economy minister and the sourest note in the Hollande repertoire, dares to complain of “absurd” austerity policies ?…
The wages-fuel-demand fallacy
byIn recent months talking heads, disappointed with the lack of economic recovery, have turned their attention to wages. If only wages could grow, they…
Yield curve and the US economy
bySo far in August the differential between the yield on the 10-year Treasury note and the yield on the 3-month Treasury bill stood at…
Storm warning
by“When Nobel Prize-winner Joseph Stiglitz was asked in Germany this week if the country and its neighbours would suffer a lost decade, his response…
Did “The Nixon Shock” Lead to Nixon’s Resignation?
byThis month we observe the 40th anniversary of the resignation, under threat of imminent impeachment, of President Richard M. Nixon. Nixon aide and loyalist…
Money, Macro & Markets
byFirst it was the government’s miraculous ability to deliver on-target GDP growth that got the permabulls bellowing again, then it was the striking (world-beating,…
Why doesn’t monetary pumping help economic growth?
byDespite all the massive monetary pumping over the past six years and the lowering of interest rates to almost zero most commentators have expressed…
QE will come to the eurozone – and, like elsewhere, it will be a failure
byThe data was not really surprising and neither was the response from the commentariat. After a run of weak reports from Germany over recent…