The once-dead Phillips curve has come back to life. But its underlying argument is still dead wrong.
History of Economic Thought
The fact that Anderson’s theory of money seems to fail the Bitcoin test forces us to question our long tradition of issuing new coins that contain precious metals, or banknotes redeemable for some other, already valuable instrument.
The inability of Hayek and other scholars to join forces against Keynes’s supposed innovations arguably contributed to Keynes’s victory among academics in the immediate post-war period.
Liberalism believes that society manages itself better than any top-down authority can. That includes the commercial life of a nation. But it also pertains to civil liberties, international relations, migrations, family and cultural life, and religion. And what does classical liberalism oppose? Managed economies, imperialism, ethnic cleansing, war, arbitrary rule, dictatorship, authoritarianism, and every action of government that goes beyond what is absolutely necessary, if any government is necessary at all. That the meaning of the term changed in the US in the first half of the 20th century is one of the most tragic language distortions on record.
A phenomenon known as the Replication Crisis is challenging the seemingly unquestionable authority and accuracy that a published study in the natural sciences is expected to have, inviting the question as to whether economists should aspire to the standards of natural scientists or to something better.
In my previous posts, Andreas Hoffmann and I discussed the problem of unintended consequences in monetary policy, particularly as applied to the U.S. Federal Reserve and the European Central Bank in the context of the 2008 crisis.