Fiscal Policy

Friday, September 10th, 2010
Earlier this summer George Soros and some leading Keynesian economists criticized what they regarded as Germany's overly strict fiscal discipline. Yet Germany's real output expanded at a robust 9% annual rate in the second quarter, while the U.S. economy grew at an anemic 1.6% rate.
Monday, August 30th, 2010
"To these free-market economists, government intrusion ultimately sows the seeds of the next crisis. It hampers what one famous Austrian, Joseph Schumpeter, called the process of "creative destruction."
Friday, August 27th, 2010
"The stimulus is causing an artificial rebound in the economy that cannot be maintained, says Jerry Jordan, former president of the Federal Reserve Bank of Cleveland." Watch it here.
Wednesday, August 25th, 2010
"YES, there is a government bond bubble. And it's huge. Uncle Sam and his counterparts in the EU and Japan are broke and are, almost surely, going to print vast quantities of money to cover their enormous spending obligations.
Wednesday, August 18th, 2010
"When the U.S. government wishes to spend more money than it receives as tax revenue, it covers the shortfall by borrowing, and foreign lenders have become increasingly important sources of such borrowed funds.
Monday, August 16th, 2010
A policy of low interest rates is a textbook response of monetary authorities to the economic weakness brought on by deficient aggregate demand.
Wednesday, August 11th, 2010
"A clear and credible path of fiscal consolidation is clearly needed and would do much to remove uncertainty about future policy and thereby build confidence.
Friday, August 6th, 2010
On Wednesday, August 4, Secretary of Treasury Timothy Geithner debated the Bush tax cuts with Douglas Hotz-Eakin, president of the American Action Forum. It was not much of a debate.
Thursday, July 29th, 2010
"The only way fiscal and monetary stimulus could "work" is if the flow of real savings (i.e., real funding) is large enough to support (i.e., fund) government activities and activities that sprang up on the back of loose-monetary policy while still permitting a positive rate of growth in the activit
Wednesday, July 28th, 2010
"In a recent Wall Street Journal column, Princeton economist Alan Blinder wonders why 64 percent of Americans do not believe the $849 billion "fiscal stimulus" bill "saved or created" many jobs.
Wednesday, July 28th, 2010
"In a recent article in this journal, Giffin, Macomber, and Berry (1981), hereafter referred to as GMB, attempt to test the hypothesis that larger deficits cause increases in the money supply and hence inflation.
Wednesday, July 28th, 2010
"The sharp rise in the rate of inflation in 1973, after two years of diminishing rates, was a great surprise to many. What was the primary cause? Many rea-sons have been advanced to explain this change, some of them logical, and some not.
Thursday, July 22nd, 2010
"In his presidential address to the American Economic Association (AEA), Milton Friedman (1968) warned not to expect too much from monetary policy.
Thursday, July 22nd, 2010
According to Reinhart and Rogoff, “for the advanced economies during 1800-2008, the picture that emerges is one of serial banking crises.” In
Wednesday, July 21st, 2010
"The financial crisis, the speculative bubble leading up to it, and the aftermath have proven once again just how true the old saying is that if you want to know what's going on in the financial system, watch the banks.
Thursday, July 8th, 2010
"In 1998, four renegade German professors tried to stop the introduction of the euro with a legal challenge in Germany's highest court. Now, 12 years later, they are fighting against a German bailout for Greece -- and this time around, people are listening to them.
Wednesday, July 7th, 2010
Over recent months, much has been made of the rapid increase in public debt levels. Protests against excess government spending in the U.S. and severe economic problems in debt-laden European countries have forced the federal debt to the forefront of national issues.
Wednesday, July 7th, 2010
Is the world finally looking to the ideas of Friedrich Hayek? It appears that the intellectual debate may be heading in a new direction. Stimulus spending has done practically nothing to reduce unemployment or spur growth; instead it has merely inflated the deficit and enraged taxpayers.
Wednesday, July 7th, 2010
The debates raging over what policies will pull the U.S. economy out of its Great Recession replicate one that occurred during the Great Depression. Thanks to the efforts of Richard Ebeling, a professor of economics at Northwood University, we have compelling and concise documentary evidence.
Wednesday, July 7th, 2010
"Many people claim today that the U.S. economy is in a “liquidity trap” and only government can spend us out of this mess.

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