==> Justin Merrill makes some good points about Cantillon Effects. One thing I had meant to mention myself: The people objecting to the “simplistic” Austrian critiques love to say, “Hey you morons, it’s not like Bernanke is literally handing out money to the bankers. He’s doing an asset swap!” But no, not in the case of paying interest on excess reserves. That is a huge income flow–what I guess would be “fiscal policy” in Scott Sumner’s framework–to the banks, that would be very much appreciated by any other industry.
==> David Glasner (quoted by Callahan) has a nice take on the “efficient markets” hypothesis.
==> I stumbled across this a few weeks ago (honest! This isn’t about the Krugman debacle) and thought it was interesting. Russ Roberts quotes from a Keynesian apologist explaining what went wrong with the WW2 forecasts.
==> At IER, I discuss the funny reaction to the supposedly good news that the US is predicted to become oil independent.
==> Tom Woods takes down the modern Greenbackers.
==> David R. Henderson and Scott Sumner clash over taxes.