History of Economic Thought

Tuesday, November 20th, 2018

This remarkable book was published in 1932. E.C. Harwood’s ideas about inflation and the business cycle have relevance for our knowledge and for policy discussions today.

Wednesday, November 14th, 2018

That the President's words were just passed over without comment or criticism tragically shows how far we’ve strayed from the ideas and ideals on which the country was founded.

Sunday, November 11th, 2018

American politics today seems ever more a contest between two forms of state control – progressive/socialist and nationalist/fascist – with both sides deploying populist states of mass agitation with the hope of deploying power to achieve their ends. Where are the liberals? Not many even claim the label.

Tuesday, November 6th, 2018

Classical liberals and libertarians consider that their defense and insistence upon a principled practice of individual liberty and competitive free markets is no less of a moral necessity and calling than earlier demands for ending infringements on personal and social freedom that were widely taken for granted.

Friday, November 2nd, 2018

An amazing book appeared before FDR was elected that explained all economic events, using sound economic logic and evidence. The crash, this book said, was the result of monetary mismanagement by the Federal Reserve and distorted price and interest rate signals.

Friday, November 2nd, 2018

Economists are often asked to render economic advice to foreign nations. Sometimes these countries are ruled by dictators. That presents a moral quandary.

Thursday, October 25th, 2018

Bagehot’s rules are ultimately geared toward assisting illiquid financial organizations but allowing insolvent ones to fail. The Fed went out of its way to support insolvent organizations.

Tuesday, October 23rd, 2018

Most human knowledge is tacit, the product of experience and not capable of being captured in words or numbers, and local, concerned with and relevant to specific local conditions and circumstances.

Wednesday, October 10th, 2018

Ten years after the 2008 financial crisis, economists are beginning to assess the lessons learned. Sometimes we learn the right lessons. Sometimes we learn the wrong lessons.

Saturday, October 6th, 2018

Academic works such as Quinn Slobodian’s Globalists demonstrate that the anti-capitalists and anti-liberals are determined to make their case through factual fabrications and scandalous misinterpretations of what classical liberals such as Ludwig von Mises and Friedrich A. Hayek really said and advocated.

Friday, October 5th, 2018

We must recognize that a whole may exhibit properties that are not present in its parts. But problems come in when the method of study for the economy as a whole looks radically different from that used for its parts.

Thursday, October 4th, 2018

Economists and philosophers engage in a strange form of positive analysis.

Tuesday, September 25th, 2018

For both social contract theory and monetary theory, theorists are considering something that never happened in the past and that they have no reason to believe will happen in the future. No such considerations are useful.

Monday, September 24th, 2018

“We should not claim for liberalism,” Robbins insisted, “that the world it could produce would be perfect.… But we may claim that, with all its deficiencies, it would still provide a safeguard for happiness and spontaneity more efficient than any other which has yet been suggested.” 

Wednesday, September 19th, 2018

If the classical liberals of that earlier time could defeat the prevailing beliefs and vested interests supporting human slavery, after its existence for all of human history, some of us believe the same can be done against the existing system of collectivism, interventionism, and welfare statism in both their authoritarian and democratic forms.

Tuesday, September 18th, 2018

Paul Krugman is a little too quick to dismiss the need for microfoundations in rigorous macro models.

Monday, September 17th, 2018

It should come as no surprise that in a political/economic system helmed by an elite that the trappings of a ruling class inevitably follow.

Wednesday, September 12th, 2018

"Pigou may have been too optimistic about the prospects for improving state action, but he had no illusions about the problem states faced in acting correctly." ~ Michael Munger 

Tuesday, August 28th, 2018

The best conclusion that can be drawn from examining these instances is that in response to the familiar rhetorical query – “Are we going the way of the Romans?” – one can reply, truthfully: “No; they occasionally reformed their currency.”

Friday, August 17th, 2018

There is a core of the economic way of thinking that can be traced from Adam Smith to Vernon Smith and that deals with basic ideas about human rationality, human sociability, and the coordination of activity through time. Incentives, information, and innovation are part of this core as they derive from the even more primordial ideas of property, prices, and profit-and-loss accounting.