Category: Economic Theory
The analysis published under this category are as follows.
Monday, September 21, 2009
The Flawed Theoretical Framework of Modern Economics / Economics / Economic Theory
By: Fred_Buzzeo
Economics is often referred to as the “dismal science.” This expression is traced back to Thomas Carlyle who claimed that economics “is not a gay science, I should say, like some we have heard of; no a dreary, desolate, and indeed quite an abject and distressing one; what we might call by way of eminence, the dismal science.”
Saturday, September 19, 2009
Academic Economists Lead Governments to the Edge of the Abyss / Economics / Economic Theory
By: Nadeem_Walayat
99.9% of academic economists living in ivory towers lost in world of their own formulae's and theories of what should happen and what could not happen not only did not see the crisis coming but far more dangerously led the government and central bank policy makers down a long winding garden path towards the edge of the financial and economic abyss. It was only after all of the economic theory was binned i.e. that which the academics had worked on and spouted for decades was financial armageddon avoided.
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Thursday, September 17, 2009
Is the Fed's Money Pumping Inflationary? / Economics / Economic Theory
By: Frank_Shostak
Given the recent, massive increase in commercial banks' excess reserves, many commentators are of the view that banks will sooner or later start employing these reserves in lending and thus cause an increase in the inflation rate.
Wednesday, September 16, 2009
The Fed Owns Most American Monetary Economists / Economics / Economic Theory
By: Gary_North
The Social Security system has long been described as the third rail of American politics. "Touch it, and you die." You get electrocuted. If you should somehow survive, the next subway train will cut you in pieces.
There is such a rail in academia: the Federal Reserve System.
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Monday, September 14, 2009
Unemployment And Stock Markets, Next Good News Or Great Depression? / Stock-Markets / Economic Theory
By: Andrew_Butter
The implicit and sometimes explicit promise of government is they will do "useful" things, like control inflation (both up and down through the genius of Inflation Targeting), keep "The Motherland" safe from aliens, bail out banks, create jobs and if they can be bothered, do things like organize assistance to hurricane victims like they did after Katrina. That's why people pay taxes, and more important, that's why they vote.
Sunday, September 13, 2009
1929 Great Crash, Depression, Then and Now Lessons From History / Economics / Economic Theory
By: Hans_F_Sennholz
Early 1955 finds the American public swamped by forecasts of prosperity and boom. Economic advisers to governments, corporations, universities, labor unions and other groups seem to have resolved in unison to assure the people that a depression like that of the 1930s has been banned forever from the American scene. "Americans need not fear a depression," they say. "Our government will carefully watch our economy and interfere when the need arises."
Sunday, September 13, 2009
Fiat Money a Tool for War to Kill Americans / Economics / Economic Theory
By: Robert_Murphy
A few years ago on these pages, I harshly criticized an article urging New Yorkers to "eat local," and went so far as to dub the young lady's column, "The worst economics article ever." I am here to report that her record has been smashed. Floyd Norris's recent New York Times article on the greenback is hands down the worst economics article I have ever read. Not only is it jam-packed full of false history, but it uses the falsehoods to justify monstrous crimes, both in the past and present.
Tuesday, September 08, 2009
How A Bear Can Be Bullish And Still Be Right / Stock-Markets / Economic Theory
By: EWI
Nico Isaac writes: Bob Prechter: the only good label is an Elliott wave label...
In recent months, Elliott Wave International President Bob Prechter has become something of a household name. In the final two days of August 2009 alone, Bob was mentioned by several news outlets from MarketWatch to the New York Times. The claim to his "fame" --
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Tuesday, September 08, 2009
When Keynesian Salvation Fails, Horrific Stimulus Trouble / Economics / Economic Theory
By: Jack_D_Douglas
On this Labor Day I got up before dawn, turned on CNBC and watched an hour long, free-wheeling discussion moderated by Maria Bartoromo among Jack Welch [GE CEO for decades], Fink [CEO and Chm. of Blackrock], Pandit [CEO of Citigroup] and about seven other major people at the top of U.S. Finance and Big Corps. They all agree we face many years of grim financial and economic and probably political developments.
Monday, September 07, 2009
Why Is Capitalism So Unpopular? / Politics / Economic Theory
By: Art_Carden
Henry Hazlitt once said that good ideas have to be relearned every generation. Among the intellectuals of our time, capitalism is wildly unpopular. This in spite of the fact that it is the only social system that has permitted prosperity and flourishing.
Sunday, September 06, 2009
Deflation, Inflation, Stagflation, Mass inflation, Hyperinflation, Which One Will Get Us? / Economics / Economic Theory
By: Gary_North
One of them will. That's if things work out really well. Two or three will if things go according to the Austrian theory of the business cycle.
Americans have been living in the eye of the monetary hurricane. Prices have been stable. In July, both the Consumer Price Index and the Median CPI were flat compared to June.
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Saturday, September 05, 2009
Failure of Economics, the Super Trend and Elements of Deflation / Economics / Economic Theory
By: John_Mauldin
The Elements of Deflation
The Failure of Economics
The Super Trend Puzzle
Final Demand and Income
Unemployment Was NOT a Green Shoot
As every school child knows, water is formed by the two elements of hydrogen and oxygen in a very simple formula we all know as H2O. Today we start a series that starts with the question, What are the elements that comprise deflation? Far from being simple, the "equation" for deflation is as complex as that of DNA. And sadly, while the genome project has helped us with great insights into how DNA works, economic analysis is still back in the 1950s when it comes to decoding deflation. Notwithstanding the paucity of understanding we can glean from the dismal science, in this week's letter we will start thinking about the most fundamentally important question of the day: is inflation, or deflation, in our future?
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Tuesday, September 01, 2009
Does Loose Monetary Policy Cause Economic Growth? / Economics / Economic Theory
By: Frank_Shostak
At the Federal Reserve Bank of Kansas City's annual economic symposium, held in Jackson Hole, Wyoming on August 21, 2009, Ben Bernanke expressed satisfaction with the action that his administration undertook to save the financial system. According to Bernanke,
Tuesday, September 01, 2009
Karl Marx and the Global Economic Crisis / Economics / Economic Theory
By: William_Bowles
Are we getting good Marx? I think not
I often wonder how Karl Marx would react were he to find himself here, right now? After all, he too lived through momentous and world-changing times, perhaps even more so than the changes we are experiencing, given that his was the world that gave birth to the rise of the Machine and capitalism as we know it. Born on the cusp so-to-speak and I too, was born on the cusp, 23 July, 1945, a couple of weeks before the empire showed the world that it was truly barbarian when it dropped atomic bombs on Hiroshima and Nagasaki.
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Wednesday, August 26, 2009
The Free Market Caused the Great Depression? / Economics / Economic Theory
By: LewRockwell
Floy Lilley writes: Did you hear the one about bobbing heads on Sunday agreeing that the cause of the Great Depression was the absence of government guidance? "The Great Depression would never have happened if there had been any economic regulations," agreed the policy wonks.
Tuesday, August 25, 2009
A Student's Guide to Economic History / Economics / Economic Theory
By: MISES
David Gordon writes: [How Capitalism Saved America: The Untold History of Our Country, From the Pilgrims to the Present. By Thomas J. DiLorenzo. Crown Forum, 2004. 295 pages.]
Tuesday, August 25, 2009
Gross National Product (GNP): How is it Calculated? What does it Measure? / Economics / Economic Theory
By: Global_Research
Prof. John Kozy writes: Although the Department of Commerce claims that GDP measures the final value of goods and services produced in the United States in a given period of time, it merely measures the income of the politically sanctioned commercial class. GDP is used as an indicator of how well that commercial class is doing; it is not a measure of the nation's well being.
Friday, August 21, 2009
Debt Fuelled Economic Recovery Leading to What? / Economics / Economic Theory
By: Andy_Sutton
Last week’s essay centered on the fact that America has borrowed nearly $12 trillion dollars yet achieved very little, if any real economic growth in the last half century. If that wasn’t alarming enough, this week’s effort should suffice to turn some heads. While last week we used the broadest monetary aggregate M3 to discount GDP, this week we’re going to take a look at velocity of circulation in the M2 aggregate and translate that into some logical conclusions. Politicians, the Conference Board and nearly every alphabet soup media outlet known to man are trying to talk this economy out of recession. We already know that talk is cheap, but I have a distinct suspicion that we’re soon going to find out exactly how cheap it really is.
Tuesday, August 18, 2009
Inflation and the Fall of the Roman Empire / Economics / Economic Theory
By: LewRockwell
This is a transcript of Prof. Joseph Peden's 50-minute lecture "Inflation and the Fall of the Roman Empire" given at the Mises Institute Seminar on Money and Government in Houston, Texas on October 27, 1984. The original audio recording is available courtesy of the Mises Institute.
Two centuries ago, in 1776, there were two books published in England, both of which are read avidly today. One of them was Adam Smith's The Wealth of Nations and the other was Edward Gibbon's Decline and Fall of the Roman Empire. Gibbon's multi-volume work is the tale of a state that survived for twelve centuries in the west and for another thousand years in the east, at Constantinople.
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Tuesday, August 18, 2009
Media Economist Paul Krugman Is Insane / Economics / Economic Theory
By: LewRockwell
Richard Daughty writes: I think that Paul Krugman is one of those absurd guys that has no idea what in the hell he is talking about and who owes his undeserved prominence to being a real butt-kissing sucker-upper to Alan Greenspan and his Federal Reserve, and now he’s doing the same thing to the laughable Ben Bernanke and his disastrous Federal Reserve, although I will admit that I don’t know why anybody listens to this guy.