Category: Economic Theory
The analysis published under this category are as follows.
Saturday, November 06, 2010
Bernanke Leaps into a Liquidity Trap, Thoughts on the U.S. Employment Numbers / Economics / Economic Theory
By: John_Mauldin
A Few Thoughts on the Employment Numbers
Bernanke Leaps into a Liquidity Trap
How to Spot a Liquidity Trap
Toy Blocks
I am in London finishing my new book, The End Game, which will be out after the first of the year, as soon as Wiley can make it happen. Working with my co-author, Jonathan Tepper, we are making good progress. We intend to quit (a book like this is never finished) tomorrow afternoon.
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Friday, November 05, 2010
Bernanke's Bubble Making Solutions Are the Problem / Economics / Economic Theory
By: Mark_Thornton
Ben Bernanke, the man who purports to be the savior of the economy today, was actually deeply involved in creating the housing bubble, encouraging people to invest in toxic assets, and orchestrating the cover-up after the bubble collapsed. Now he is bludgeoning the economy into depression. Just like his predecessor Greenspan, his statements are replete with misleading, convoluted, and inconsistent claims, all designed to disguise the role of the Fed in the economic calamity.
Wednesday, November 03, 2010
Academic Economists are the Unholy Priests of the Bankster's / Economics / Economic Theory
By: Global_Research
Gabriel Donohoe writes: "Political Economists," according to Stephen Zarlenga in The Lost Science Of Money, "became the priesthood of the new Bank aristocracy, often serving as a propaganda apparatus to whitewash the monetary power structure. They put forward false ideas and smoke screens on the nature of money, primitive concepts that help entrench the bankers."
Tuesday, November 02, 2010
Keynesian Economic Confusion Means Investors Should Continue to Accumulate Gold / Economics / Economic Theory
By: John_Mauldin
Michael Lewitt is one of the most provocative writers I know. He consistently gives me something to chew on with his monthly letter. How he comes up with all those quotes (usually from sources I have never read but should have) amazes me. He has a unique view of the markets as he run Collateralized Debt Obligation funds and really understand the nitty-gritty of the bond and credit markets.
Monday, November 01, 2010
Economic Recessions, Banking Reform, and the Future of Capitalism / Economics / Economic Theory
By: MISES
Jesús Huerta de Soto writes: It is a great honor for me to have been invited by the London School of Economics to deliver this Hayek Memorial Lecture. To begin, I would like to thank the school and especially Professor Timothy Besley for inviting me, Professor Philip Booth and the Institute of Economic Affairs for allowing me to also use this as an opportunity to introduce my most recent book, entitled Socialism, Economic Calculation, and Entrepreneurship, and finally Toby Baxendale for making this whole event possible.
Monday, November 01, 2010
Deflation Is Not the Enemy, Bad Economics Is / Economics / Economic Theory
By: Gerard_Jackson
According to Alan Blinder "the present danger is not inflation but deflation". His pal Bernanke has driven the Fed's funds rate down to zero while giving the US economy an unprecedented increase in its monetary base. Not satisfied with that he is now apparently preparing an astonishing $2 trillion monetary expansion -- and Blinder worries about deflation!
Friday, October 29, 2010
A Complexity Manifesto, Capitalists Continue to Increase Complexity Within Their Spheres of Production / Economics / Economic Theory
By: Ashvin_Pandurangi
"Every limit appears as a barrier to be overcome" - Karl Marx (describing the world through a capitalist’s eyes)
There has been much debate since the global financial crisis of 2008 about what exactly happened and why. Some analysts believe that a period of deregulation in the financial sector, including the infamous repeal of Glass-Steagall (separating commercial and investment banking activities) [1], combined with reckless managerial decisions was the primary driver of a housing bubble, which led to a credit crunch and economic recession. Conservatives and libertarians tend to place the blame on government intervention in the housing and financial markets through Congressional legislation, such as the Community Reinvestment Act (putting pressure on banks to issue credit in low-income neighborhoods) [2], and the Federal Reserve's loose monetary policy (targeting low interest rates during the tech and housing bubbles) [3].
Thursday, October 28, 2010
Paul Krugman Challenged to Debate on Keynesian vs Austrian Business Cycle Theory / Economics / Economic Theory
By: Robert_Murphy
As many readers already know, last week I launched a campaign to pressure Paul Krugman into debating me. In just the first week, this sophomoric 7-minute YouTube video has generated $35,000 in pledges. At this point, I don't see how Krugman will ever live this down until he debates me on Austrian versus Keynesian business-cycle theory.
In the present article, I'll give a little background of how I came up with the idea. Then I'll point out the broader implications of this episode, which go well beyond my jousting with Krugman.
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Wednesday, October 27, 2010
Poststeroid Economics / Economics / Economic Theory
By: Vitaliy_Katsenelson
During the ’80s and ’90s, ignorance was bliss. The global economy was growing nicely, and analyzing it (or even paying attention to market cycles) seemed like a waste of time, as the economy came in only three flavors: good, great and awesome. Even if you misread the flavor, the downside was that you’d just make a little less money. Read full article... Read full article...
Sunday, October 24, 2010
The Paradox of Capitalism, The Relevance of John Maynard Keynes / Economics / Economic Theory
By: Global_Research
Prabhat Patnaik writes: John Maynard Keynes, though bourgeois in his outlook, was a remarkably insightful economist, whose book Economic Consequences of the Peace was copiously quoted by Lenin at the Second Congress of the Communist International to argue that conditions had ripened for the world revolution. But even Keynes' insights could not fully comprehend the paradox that is capitalism.
Monday, October 18, 2010
Putting Austrian Business-Cycle Theory to the Test / Economics / Economic Theory
By: Robert_Murphy
Paul Krugman is despairing of late, because a growing number of mainstream economists are adopting (versions of) Austrian business-cycle theory. The most recent convert is Minneapolis Fed president Narayana Kocherlakota.
Krugman uses the occasion to criticize what he derides as "the hangover theory" of economic slumps, in which high unemployment is necessary after an artificial boom. As happened with his earlier criticism of "the hangover theory," here too Krugman buttresses his Keynesian logic with a misguided appeal to the data.
Thursday, October 14, 2010
Nobel Committee in Search of Economists / Economics / Economic Theory
By: Robert_Murphy
This year's Nobel Memorial Prize in Economics goes to Peter Diamond, Dale Mortensen, and Christopher Pissarides, for their work on "search theory," especially as applied to labor markets. In the present article I'll explain the basics of their contribution but then point out the crisis in mainstream economics: even though these economists — especially Diamond — are very smart and productive, they and their colleagues have hardly helped the plight of the unemployed, as we stumble ever deeper into depression.
Tuesday, October 12, 2010
Krugman is a Smart Fellow but Obsessed with Government Spending / Economics / Economic Theory
By: MISES
Murray Sabrin writes: Paul Krugman wears many hats — Princeton University professor, New York Times columnist, Nobel Laureate in Economics (2008), prolific author of scholarly books and journal articles, and now president of the Eastern Economic Association. The EEA is a regional scholarly group that publishes a journal and holds an annual academic conference in New York City every other year. The EEA is housed in the Anisfield School of Business, at Ramapo College, where I have taught Corporate Finance, and Financial Markets and Institutions for the past 25 years.
Tuesday, October 12, 2010
Paul Krugman "I Told You So" Keynesian Stimulus Economic Nonsense / Economics / Economic Theory
By: Mike_Shedlock
As predicted on numerous occasions, Paul Krugman is once again pleading for still more Keynesian stimulus. Please consider Hey, Small Spender
Saturday, October 09, 2010
Economic Nonsense From the Washington Post / Economics / Economic Theory
By: Mike_Shedlock
The only genuinely good news in Friday's jobs report was the much needed shedding of 159,000 government workers of which only 77,000 were temporary census workers.
Shed another million government workers and you have a small start as to what needs to happen. Some don't see it that way, including Erza Klein at the Washington Post.
Friday, October 08, 2010
Economic Depressions, Their Cause and Cure / Economics / Economic Theory
By: Murray_N_Rothbard
We live in a world of euphemism. Undertakers have become "morticians," press agents are now "public relations counsellors" and janitors have all been transformed into "superintendents." In every walk of life, plain facts have been wrapped in cloudy camouflage.
No less has this been true of economics. In the old days, we used to suffer nearly periodic economic crises, the sudden onset of which was called a "panic," and the lingering trough period after the panic was called "depression."
Tuesday, October 05, 2010
The Deep Cause Of The Great Financial Crisis: The Peace Diktat Of Versailles / Economics / Economic Theory
By: Professor_Emeritus
According to a recent news item, not widely circulated, after more than 90 years of slavery, on October 3, 2010, Germany made the final payment for its World War I debt. This event is highly symbolic. It gives me great pleasure to be one of the first to congratulate you, literally hours after the German people were finally freed from debt slavery.
Monday, October 04, 2010
Blind to the Flaws of Keynesian Economic Theory / Economics / Economic Theory
By: Robert_Murphy
Recently the pundits and bloggers have been arguing about the empirical case for (and against) the Obama Administration's $800 billion stimulus package. I have already focused on Paul Krugman's humorous role in this debate, and today we'll get some chuckles courtesy of Princeton economist Alan Blinder.
Monday, October 04, 2010
Why I Despise Krugman / Politics / Economic Theory
By: LewRockwell
Recently, I wrote a take-down of Paul Krugman. I pointed out how, in some of his recent posts, Krugman was distorting facts in order to score points for his policy prescriptions. I showed how he was pulling sleight-of-hand with the numbers, so as to play on readers’ misconceptions, and thereby make his rather foolish policy prescriptions sound reasonable.
Monday, October 04, 2010
US Economy Demand Deficiency is Not the Problem and Keynesianism is Not the Solution / Economics / Economic Theory
By: Gerard_Jackson
In trying to explain the state of the American economy the commentariat is still blaming the lack of consumer demand. But as the classical economists always pointed out when presented with this fallacy, consumption is never a problem but production is.
(Although I have made use of classical economists numerous times, drawing attention their correct views on production and consumption, I should make it clear that classical economists were far from being in agreement on every important point of theory, especially where value, prices and costs entered the discussion.)
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