Phases Of The Crisis – Are We Approaching The Endgame?

Phase 1: Greenspan, the arch money crank The Greenspan “put”, and the collective adoption by most central bankers of low interest rates after the dot-com bust and 9/11, caused one of the largest injections of bank credit in history. Since bank credit circulates as money, we can...

Charles Moore reviews Keynes vs Hayek

I was pleased to see the LSE’s recent Hayek vs Keynes debate picked up by Charles Moore atThe Telegraph: The Hayekians, led by Professor George Selgin, argued that Keynes failed to see the way busts are the natural result of booms – the “malinvestment hangover” from the party...

What Type Of Free Banking Do We Want?

The article below represents the intellectual endeavours of two of the young stars of the Austrian School to address some of what they describe as “quibbles” with one of the more senior members of the School, Professor George Selgin and to some extent Prof Horwitz and our own...

AEP: Return Of The Gold Standard As World Order Unravels

Cobden Centre readers may find it heartening that Ambrose Evans-Pritchard is now showing an interest in hard money: On one side of the Atlantic, the eurozone debt crisis has spread to the countries that may be too big to save – Spain and Italy – though RBS thinks a €3.5 trillion...

Homo Oeconomicus And The Monetary Basis For A Big Society

Jesse Norman’s book on the Big Society, which I reviewed recently, caused me to reflect once again on Homo Oeconomicus, that totally un-human being, that rationally calculating bundle of circuits, which mechanically responds to events to maximise its utility. We know utility is a...

Global Warming: The New Malthusian scare

I was kindly sent a copy of Lord Lawson’s book “An Appeal to Reason: A Cool Look at Global Warming”. When I was 16, I was given a small pamphlet by the Heritage Foundation called “Our Moral Heritage” by F A Hayek which was lecture 24 of the Heritage Lectures 1983 with a splendid...

James Turk interviews James Grant

Grant is the owner of Grant’s Interest Rate Observer. He is one of the greatest financial commentators and you have probably never heard of him. Our friends at the Mises Interview interviewed him in 1996, http://mises.org/journals/aen/aen16_4_1.asp . His book the Trouble with...

The Untouchable Case for Indian Capitalism

An excellent article from B. Chandrasekaran for the Wall Street Journal: The plight of the Dalits, those whom the Hindu caste system considers outcastes and hence Untouchables, was a rallying cry of Hindu reformers and Indian leftists for half a century. But today these victims...

Telegraph: Banks Buy Bulk Of £39.8bn Of New Gilts

The Telegraph reports: Banks bought 91pc of the £39.8bn of net issuance of new gilts with purchases totalling £36.1bn, compared to the £11.4bn of UK debt bought in the preceding six months. The scale of the buying of UK Government debt was revealed in figures published on...

Some More Quibbles with Free Banking

If you are interested in monetary theory and what the Austrian School has to say about this debate, the paper that Anthony linked to last week is well worth reading. It addresses some common misunderstandings about Monetary Equilibrium Theory (MET). This theory is controversial...