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constitution
Alexander W. Salter

The drawback of a monetary constitution

My previous posts have been fairly positive towards the idea of a monetary constitution: a binding rule on monetary policy makers that these policy makers cannot change.  A monetary constitution is particularly appealing for those who desire monetary affairs to be brought under the rule of law.  But there is one problem with monetary constitutions that […]

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Aaron Nathans

A Recession Wouldn’t Spread Here Like a Cold

Yesterday, a financial reporter posed a good question to me: Why haven’t the global economic woes caused a recession in this country? Or, why wouldn’t they?

It’s hard to look away from the problems in China, Greece and elsewhere. Last week, U.S. News & World Report quoted our report, Business Conditions Monthly, on the possibility of headwinds from China affecting us at home. So why is it less than likely that problems in China, Greece, or elsewhere would send the U.S. into recession? Our senior research fellow, Bob Hughes, stated the reason in rather simple terms.

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