Financial Economics

Archive for Financial Economics

Overdose: The Next Financial Crisis

I was on a panel at FreedomFest offering commentary on this short documentary. I thought it was great. (I was sitting next to Andrew Schiff. Poor guy had a bunch of people come up to him, talking about his brother and his dad.)

My Heretical and Pathbreaking Work on Austrian Interest Theory

By popular demand, here are two things that are extremely geeky: (A) My doctoral dissertation. (B) A long paper I wrote for a recent Liberty Fund conference on Austrian business cycle theory. I realize how obnoxious this sounds, but it’s just possible that I mapped out enough work to occupy the careers of three productive […]

Checkmate

I lied when I said I was done posting on this topic. But now I’m truly done. If the following doesn’t convince you folks that Wenzel/Major Freedom got off on the wrong footing, I don’t know what else would. Major Freedom in one thread writes: “Investment and consumption, THOSE are commensurable concepts. They are both […]

Murray Rothbard, Muddled Thinker, and Accountants are All Keynesians Now

[UPDATE below…] I realize this is inside baseball and maybe 95% of you don’t care, but I have real work to do so this occupies my attention… Major Freedom has been doing his best to escape from the power of my simple point that savings is income minus consumption. He claims that this is a […]

Does Karl Denninger Understand How Central Banks Inflate Nowadays?

Although he occasionally notices stuff that other financial bloggers have missed, Karl Denninger apparently subscribes to the motto: “Speak loudly and carry a small stick.” His latest tirade targets Ron Paul, who recently suggested (see the latter half of this video) that the Treasury just wipe away the $1.6 trillion in its debt held by […]

On Using Models

From Mises’ Theory of Money and Credit (though it is from the later material, which was written much later than the original 1912 edition): “There are problems of theory full comprehension of which can be attained only with the aid of the theory of indirect exchange. To seek a solution of these problems, among which, […]

Yet Another Stunning Empirical Refutation of Keynesianism?

If I had to summarize in five words my critique of Keynesianism, it would be, “Spending doesn’t create real income.” (Then, after the standing ovation, if people wanted an encore, I would say, “Production does.”) I admit I just glanced at it, but I do believe Daniel Kuehn unwittingly provided empirical confirmation on his blog. […]

Rorschach on Economics

Someone (sorry I’ve forgotten who it was) emailed to get my reaction to this chart posted on Zero Hedge: The obvious “fight the power” reaction to the above is to say, “Those traitorous One World banksters! They outsource manufacturing jobs in order to fatten their own bottom line.” But that’s not necessarily what’s going on. […]