“How a Rich and Proud Nation Went Broke”

– May 5, 2010

“On Loyalty Day, October 17, 1951, Evita declared, “I ask you today, comrades, only one thing — that we will all swear publicly to defend Perón and fight to the death.” She died in 1952 of cervical cancer, and to this day people leave flowers at her fa …

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Let’s Talk Some Monetary Theory and the Trade Cycle

– May 5, 2010

“For the graduate students, my focus is both to communicate the basic idea (and research puzzles) of how to study intertemporal coordination. I have asked them to think about the relationship between Hayek’s 1928 paper on price equilibrium and movement …

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Real Banking Reform? End the Federal Reserve

– May 5, 2010

“The next major question that needs to be asked is: How do they know? These are the same politicians whose time horizon goes no further than the next election day, and who pander to the special interest groups that provide them with the campaign contri …

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Market Interest Rates Need to Tell the Truth

– May 4, 2010

“In the free market, interest rates perform the same functions as all other prices: to provide information to market participants; to serve as an incentive mechanism for buyers and sellers; and to bring market supply and demand into balance. Market pri …

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The Origins of the Federal Reserve

– May 4, 2010

“Where did this thing called the Fed come from? Murray Rothbard has the answer here — in phenomenal detail that will make your head spin. In one extended essay, one that reads like a detective story, he has put together the most comprehensive and fasc …

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Lawrence H. White – What Type of Inflation Target?

– May 2, 2010

“For much of monetary history, inflation targeting was unnecessary. There was no need to worry about constraining the central bank’s inflationary proclivities because no central bank existed. The quantity of basic money was constrained by the mints’ co …

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“A Three-Point Plan to Save the Euro”

– April 30, 2010

“The rescue package requested by Greece will, if endorsed, buy the eurozone six months, perhaps a year at most. By then, the Greek government will have exhausted the aid and be forced to ask for more or to borrow at astronomical rates. This assumes tha …

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“Senate Ends Financial-Bill Standoff”

– April 29, 2010

“Lawmakers ended the three-day standoff holding up action on the financial-overhaul bill, setting up a Senate debate in which both sides will be maneuvering for advantage. The breakthrough came in a bipartisan agreement on a single contentious element …

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What Austrian Economics Can Tell Us about the Crisis

– April 28, 2010

The recent financial crisis has called into question several basic tenets of mainstream macroeconomics. In the words of William White, former chief economist of the Bank for International Settlements (BIS), “the prevailing paradigm of macroeconomics al …

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“Greece’s Threat to the Euro”

– April 28, 2010

“All too often in the midst of an economic and financial crisis, policymakers either engage in denial or else take flights into fantasy. Sadly, the present Greek crisis is proving to be no exception. Rather than recognising the Greek crisis for the sol …

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“The Limits of Monetary Policy”

– April 28, 2010

“History has shown that monetary stability—money growth consistent with a stable and predictable value of money—is an important determinant of economic stability. Safeguarding the long-run purchasing power of money is also essential for the future of p …

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“The Case for Auditing the Fed is Obvious”

– April 28, 2010

“Recently, the Federal Reserve has significantly altered the procedures and goals that it had followed for decades. It has more than doubled its balance sheet, paid interest to banks on reserves held as deposits with the Fed, made decisions about which …

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