Financial Economics

Archive for Financial Economics

Bob Wenzel Is Golden

My post title is actually a little too conciliatory, because I don’t think Bob’s overall position holds up to scrutiny. But, I definitely misunderstood him in my previous post, and I can’t explain it myself. I was in a Connecticut airport about to board a flight that had been delayed by Air Force One (seriously, […]

Is Insider Trading Really a Crime?

My sources say no: [S]uppose a Wall Street trader is at the bar and overhears an executive on his cell phone discussing some good news for the Acme Corporation. The trader then rushes to buy 1,000 shares of the stock, which is currently selling for $10. When the news becomes public, the stock jumps to […]

Final Thoughts on MMT

[UPDATE below.] I kept telling myself that I didn’t have a problem, that I could stop reading the comments in this post whenever I wanted. Well I think I need to go cold turkey. So let me make three main concluding points: POINT #1: The accounting identities don’t prove the things that the MMTers think […]

My Critique of MMT

…is up at Mises.org. An excerpt: According to many proponents of MMT, “deficits don’t matter” when a sovereign government can issue its own fiat currency, and all the hand wringing over the government’s solvency is absurd. In fact, the MMTers claim that given the reality of a US trade deficit, a sharp drop in the […]

Paul Krugman, Inflation Denier

In a recent blog post, Krugman provides some graphs of the things “we’re supposed to be worried about,” which he means sarcastically. Namely, bond market confidence and (price) inflation. Here are the charts: Then Krugman concludes: A naive observer might note that interest rates are low by historical standards, making you wonder why we’re obsessing […]

Someone Needs to Send Jon Stewart a Book on Public Choice

He can’t understand why Goldman executives make money for the company, but then “screw up” when they are running the Fed and government. The Daily Show – William CohanTags: Daily Show Full Episodes,Political Humor & Satire Blog,The Daily Show on Facebook

MMT Bask

OK I have decided that this MMT (Modern Monetary Theory) doctrine/worldview needs a thorough refuting, much more than my good friend’s quick thoughts. I have seen our frequent guest “AP Lerner” make numerous claims in the comments of this blog that seem almost self-evidently false to me. However, I can’t very well write a Mises.org […]

Exhibition Match: Murphy vs. Crucini on Gold vs. Fiat Money

I should clarify that Mario Crucini, a professor at Vanderbilt, is not a Keynesian. However, this Thursday at 5pm we will be debating the merits of a gold standard versus fiat money. The event is open to the public but it will not be recorded. You still have time to buy your plane tickets. DETAILS: […]