Topic: Economic Education

“China’s Coming Inflation Nightmare”

– December 21, 2010

“It is our suspicion that China likes declining commodities. Soaring prices over the past several months have made it much more expensive for China to squelch its never-ending thirst for raw materials. What better way to get lower prices and fighting i …

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“Inflation, Here is Thy Sting”

– December 20, 2010

“The sting of inflation is showing up in the emerging market economies, where rising food prices are stinging the consumer. (Oh sorry I forgot, food inflation isn’t inflation!) China has a de facto USD peg and that policy means that, in the absence of …

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Ben Bernanke’s Bond Bunk

– December 8, 2010

“Here’s the problem in the main: Bernanke’s only tool to “tighten” monetary policy means selling bonds into the market and taking in cash from the system. But what happens if he holds bonds that have all gone down in value? He gets screwed, that’s what …

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“Leading Chinese credit rating agency downgrades USA government bonds”

– November 12, 2010

“One of China’s leading credit rating agencies has downgraded United States of America government debt in response to what it sees as deliberate devaluation of the dollar by quantitative easing and other means. If China, now the second biggest economy …

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A Return to the Gold Standard? – Richard Ebeling

– November 11, 2010

“Monetary central planning has worked no better than any other form of central planning over the last one hundred years. The world’s central bankers – just like the central planners in the old Soviet Union – just do not have the knowledge, wisdom and a …

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The World’s Most Profitable Company

– November 1, 2010

Economic Bulletin Vol. L, no. 11 | November, 2010 The Fed’s profits from interest on its holdings soared after 2007. But so did the risks from its purchases of toxic assets. Its accounting methods understate these risks.  

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Investing in Gold

– September 2, 2010

If you want to invest in gold, there are a variety of ways to do so. Here we sort out the pros and cons of each.

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Is There a Government Bond Bubble?

– August 25, 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. The printing presses are …

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“A Monetary Policy Simulation Game”

– June 11, 2010

The author presents a computer game that puts the player in the role of a central bank governor. The game is a stochastic simulation of a standard reduced form macro model, and the user interacts with this simulation by manipulating the interest rate.

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How to Invest Wisely

– June 1, 2010

Economic Bulletin Vol. L No. 6 | June, 2010 How to Invest Wisely tells you how to make investment decisions according to consistent criteria— rather than by following the latest financial fad. By Lawrence S. Pratt

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“Calculating the Candy Price Index”

– May 13, 2010

“In this classroom experiment, students develop a price index based on candy-purchasing decisions made by members of their class. They use their index to practice calculationg inflation rates and to consider the strengths and weaknesses of the consumer …

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“Euro Under Pressure As Greek Bonds Slump”

– April 21, 2010

“The euro is slumping against the dollar Wednesday morning as Greek bond prices tumble and their yields surge higher against their German counterparts. The dollar is split against other major currencies, with little change against the yen, a retreat ag …

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