“Mahathir Says Currency Trading ‘Silly’, Advocates Return to Peg”

– November 16, 2010

“Former Malaysian Prime Minister Mahathir Mohamad, who fought off an attack on the ringgit with capital controls during the Asian financial crisis, said currency trading is “silly” and the world should return to the Bretton Woods System of fixed exchan …


Messynomics and the Troubles with Money – Peter Boettke

– October 19, 2010

“Money is non-neutral, and the capital structure in an economy consists of combination of heterogeneous capital goods that multiple-specific uses. Once these propositions are included in the analysis, along with other messy aspects of the real world, o …


Capital and Interest: A Critical History of Economical Theory

– September 20, 2010

“The intentionally limited task to which I intend to devote myself in the following pages is that of writing a critical history of the theoretical problem of interest. I shall endeavour to set down in their historical development the scientific efforts …


“Regulators Tighten Bank Capital Rules”

– September 13, 2010

“Global authorities have settled on their punishment for banks’ role in the financial crisis: a future encumbered by the burden of significantly heavier reserves that will impede the impulse to seek profit through excessive risk taking. Senior regulato …


“Less than Zero: The Case for a Falling Price Level in a Growing Economy”

– August 4, 2010

“Not long ago, many economists were convinced that monetary policy should aim at achieving ‘full employment’. Those who looked upon monetary expansion as a way to eradicate almost all unemployment failed to appreciate that persistent unemployment is a …


Summer Reading III

– July 22, 2010

According to Reinhart and Rogoff, “for the advanced economies during 1800-2008, the picture that emerges is one of serial banking crises.” In This Time is Different, the authors bring us up to the present by examining the history of banking crises. Ban …


“Fed’s Fisher sees slower U.S. Growth Ahead”

– July 6, 2010

“In the second half of 2010, the U.S. will experience “slower economic growth than we’ve had in the first and second quarter,” Fisher told the Japanese business daily Nikkei. He estimated U.S. growth of 2%-3%, saying that the figure will likely come “c …


“Crisis, Conditions and Capital”

– June 11, 2010

“A selection model for 68 countries between 1970 and 1998 is used to test the impact of International Monetary Fund (IMF) programs on international capital markets and examine how agreements are perceived by multinational investors. Results reveal that …


“Bernanke Says Fed to Take Necessary Steps on Growth”

– June 9, 2010

“Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank will act as needed to aid financial stability and economic growth after restarting emergency currency-swaps to help contain Europe’s debt crisis. ‘Our ongoing international cooperatio …


“Warning: Inflation May Be Harmful to Your Growth”

– May 13, 2010

“While few doubt that very high inflation is bad for growth, there is less agreement about the effects of moderate inflation. Using panel regressions and allowing for a nonlinear specification, this paper finds a statistically and economically signific …


Monetary Policy in a World of Uncertain Productivity Growth

– March 25, 2010

“This paper considers inflation forecasts for 2001 under two different assumptions about productivity growth. One assumption, the optimistic one, is that productivity growth has risen above its long-run historical average and that 2001 will see near pr …


“Something Besides Money Growth Causes Inflation?”

– March 17, 2010

“Some economic phenomena can result from a variety of causes. A temporary increase in unemployment, for example, might be caused by a sudden, disruptive change in production technology, or in trade patterns, or in labor or tax laws; or it could be caus …