It was recently pointed out to me that certain free market orientated friends dislike policies that fail to restore immediate growth: Basic economic theory posits that as households and businesses become more uncertain about the future, the more they save from their after-tax incomes — and a rising savings rate in the private sector at a […]
Andrew Lilico has written a great article for The Telegraph on the dangers of deposit insurance: In a classic 2005 paper from the highly authoritative Journal of Monetary Economics, Asli Demirgüç-Kunt and Enrica Detragiache investigated the question “Does Deposit Insurance Increase Banking System Stability?“ Their answer, based on an empirical study of a large panel of countries from […]
A great letter to the editor of the FT from Terry Smith: Sir, I refer to the debate being conducted in the pages of the Financial Times between those who propose further Keynesian measures, such as Martin Wolf (“Struggling with a great contraction”, August 31), and those who do not accept that they will work, such as Wolfgang […]
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 say public policy has created the largest amount […]
As a young man, Prof Ebeling witnessed first hand the demise of the Soviet system. The article below is a truly remarkable eye witness account of the 72 hours that changed the world. Pause on that: just 72 hours to move from seemingly unassailable Communist Party rule to the new beginnings of the Russian nation […]
Back in the ’30s, at the time of the original Keynes-Hayek debate, Hayek had a solid methodological system that could explain the causes of the recession of the late ’20s and early ’30s, and it’s subsequent gyrations, up and down. The root cause was excessive credit creation by the world’s main central banks, and their […]
FT – Bullion bulls talk of $5000 gold Historically, gold and silver were the money of choice, freely chosen by the people as the most marketable commodities. The value of your labour was measured in these precious metals. Wicked Kings through the ages debased the people’s money for their own profit. The last English king to do this was […]
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 that went on too late the night before. In the rap, […]
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 Founding Fellow, Prof Anthony Evans. I have […]
Another great interview with Sean Corrigan on CNBC Airtime: Mon. Jul. 18 2011 | 7:00 AM ET Big US banks should have been allowed to fail, Sean Corrigan, chief investment strategist at Diapason Commodities Management, told CNBC Monday. “The privileged few clustering around the Treasury Secretary and the Fed have eaten everybody else’s lunch,” he said.
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