Archive for Business cycle

Sumner vs. Murphy

In a cosmic coincidence, on Monday Scott Sumner released an essay via Mercatus talking about the effectiveness of monetary policy in preventing recessions, particularly if the Fed implements his idea of level targeting NGDP. On Tuesday, my next installment in the “Understanding Money Mechanics” series ran, this one offering a summary and critique of Sumner’s […]

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BMS ep. 67: Walter Block and Bill Barnett Critique the Hayekian Triangle

Here is the standard audio, and I’m now experimenting with releasing select episodes on my YouTube channel:

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Deep Thoughts on Capital Theory

In the latest Bob Murphy Show I talk to Nicolas Cachanosky about his work (often with Peter Lewin)…

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Response to Selgin on Fractional Reserve Banking and the Business Cycle, Part I

George Selgin has a 3-part series (I, II, and III) at Alt-M taking people (like me) to task for claiming that FRB per se causes the boom-bust cycle as described by Mises/Hayek. To be clear, George is putting aside the issue of whether FRB is fraud, and is just focusing on the economics. (He thinks […]

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A Note on Stock Market Volatility

So if I promise to criticize myself, can I get a blogging gig at EconLog? I understand the Efficient Markets Hypothesis, and I think it’s a very good way to take a first crack at the markets. The thing that annoys me about many EMH proponents is that they think they are being empirical and […]

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Chinese Stock Market Crashing

Details here. It’s down about 25% in the last two weeks, and 11% in the last two days. Meanwhile, Scott Sumner is running victory laps, over those broken records who called it a “bubble” but didn’t give the precise timing. (See the P.P.S. in his post.)

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Stock Market Still Utterly Dependent on Easy Money

The Fed’s announcement today sent stocks soaring. From a CNBC story: U.S. stocks surged on Wednesday, with the Dow marking its best session of the year, as investors celebrated a rally in the energy sector and the Federal Reserve’s pledge to be patient in raising interest rates. Stocks rose after the Federal Reserve retained the […]

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The Fed Chairs Have a Habit of Hazing

As I make clear in my recent interview with Tom Woods, I think that Bernanke painted himself (and the US economy) into a corner, then handed the paintbrush over to Janet Yellen. In case I sound “paranoid,” let’s review our history: ==> Paul Volcker took over as Chair of the Fed in August 1979. A […]

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