“In a Sluggish Economic Summer, No Easy Fix Ahead”

– August 13, 2010

“Typically, the Fed can lower interest rates to encourage Americans to borrow money and spend it, invigorating the economy. But the benchmark interest rate controlled by the Fed has been almost zero for more than a year now. The Fed this week took a ne …

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“Fed Official Warns of Starting a Cycle of Boom and Bust”

– August 13, 2010

“In a sharply worded dissent to the Federal Reserve’s decision to help ease the supply of credit to the economy, a member of the Fed committee that sets interest rates said Friday that the central bank’s monetary strategy could backfire and touch off a …

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“The Austrian Theory: One More Time”

– August 12, 2010

“The Austrian theory is not a theory of recessions per se; it is a theory of the unsustainable boom. As such, it has a much stronger link to the underlying microeconomics than does much of today’s mainstream theorizing. The Austrians focus broadly on c …

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Monetary Policy and Productivity

– August 11, 2010

“This relationship holds, I believe, because low inflation tends to focus people’s attention on productive investments at the same time it promotes confidence by delivering stability, while high inflation tends to encourage speculative investments and …

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“The High Costs of Very Low Interest Rates”

– August 11, 2010

“The prevailing view among economists, policy makers and Federal Reserve Board governors is that a zero or near-zero short-term interest rate stimulates the economy—the lower the rate, the better. It is time to re-examine this conventional wisdom. In f …

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“Money in the 1920s and 1930s”

– August 4, 2010

“One of the most enduring and troublesome mysteries in economics is money: how it is created, what sorts of institutions initiate the process, what kinds of mystique and priestcraft central bankers use in managing monetary systems, and what rules, laws …

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“Should the Fed Pump Even More”

– July 29, 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 per …

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“Alan Blinder and Mark Zandi’s Keynesian Black Box”

– July 28, 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. “The main reason,” he explains, “appears to be that the W …

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“Economic Recovery Slower Than Expected”

– July 14, 2010

“Federal Reserve leaders marked down their expectations for growth and inflation last month, concluding that the economic recovery is proceeding more slowly than they had thought in the spring but that the slowdown did not warrant new policy actions. B …

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Keynes vs. Hayek: The Great Debate Continues

– July 7, 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 com …

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“Why Obamanomics Has Failed”

– June 30, 2010

“The administration’s stimulus program has failed. Growth is slow and unemployment remains high. The president, his friends and advisers talk endlessly about the circumstances they inherited as a way of avoiding responsibility for the 18 months for whi …

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“The Great Depression According to Milton Friedman”

– June 16, 2010

“Few events in U.S. history can rival the Great Depression for its impact. The period from 1929 to 1941 saw fundamental changes in the landscape of American politics and economics, including such monumental events as America ’s going off the gold stand …

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