It’s easy to criticise the Fed for its failures, because its successes have been only one in number: kicking the can down the road.
But we should spare a thought for the difficulties policy-makers now face. So what would you do if you were on the Open Markets Committee? Continue reading On being an FOMC member
One of my regular readers has raised the important subject of Say’s law, the denial of which both Keynesian and modern monetarists are emphatic.
They need this fundamental axiom to be untrue to justify state stimulation of aggregate demand. Either Say’s law is right and state intervention is economically disruptive, or if it’s wrong modern economists are right to ignore it and progress their science beyond it. Continue reading Why Say’s law is always true
Monetary policy, we are told, is all about staving off recession and stimulating economic growth.
However, not only is monetary debasement in any form counterproductive and destroys the personal wealth of the masses, but the economists who devised today’s monetarism have completely lost their way.
This article addresses the confusion surrounding this subject, and concludes the real reason for today’s global monetary policies is an ultimately futile attempt to prevent a systemic and economic crisis. Continue reading Saving the system
It is a month after Britain’s surprise vote to leave the EU.
A new Conservative Prime Minister and Chancellor are in place, both David Cameron and George Osborne having fallen on their swords. The third man in the losing triumvirate, Mark Carney, is still in office. Having taken a political stance in the pre-referendum debate, there can be little doubt the post-referendum fall in sterling was considerably greater than if he had kept on the side-lines.
This article takes to task the Treasury’s estimates of the effect of Brexit on the British economy and Mr Carney’s role in the affair, then assesses the actual consequences. Continue reading Brexit post-mortem
The earliest signs are developing of hyperinflation, more correctly described as a collapse of the purchasing power of all the major government currencies.
Central bankers are almost certainly unaware of this danger, partly because their chosen statistics fail to capture it, but mostly because conventional monetary economic theory is lacking in this regard. Continue reading The real message from asset inflation