Financial Economics

Archive for Financial Economics

Krugman the Saucy Vixen Playing Hard to Get With Scott Sumner

Poor Scott Sumner. Little does he know, I will soon write a Mises Daily article that absolutely eviscerates his “interest-income-isn’t-really-income” posts. But then on top of that, Krugman gives him the cold shoulder today: The truth is that it’s very hard for central banks to get traction in a zero-rate world. This doesn’t mean that […]

The Most Amazing CNBC Article I Have Ever Read

I reproduce John Carney’s article here in full: David Stockman: I Invest In Anything Bernanke Can’t Destroy “I invest in anything that Bernanke can’t destroy, including gold, canned beans, bottled water and flashlight batteries,” David Stockman tells Jennifer DePaul of the Fiscal Times. Stockman rose to fame as a Hayek quoting Congressman who became Ronald […]

Murphy Twin Spin

(We also would have accepted, “Murphy Double Play.”) Sometimes life can get you down. Your kids are misbehaving, your car breaks down, you throw your back out, you root for the Buffalo Bills…. But then, every once in a while, a Monday rolls along featuring new Murphy articles in two different venues. And somehow, you […]

The Second Sign of Insanity: I Agree With DeLong on Money Demand

Uh oh, I think you guys may need to organize an intervention. First I say that a general overproduction is possible. Now, even more alarming, I was reading DeLong (from a Krugman link), waiting to pounce, and found myself saying, “Yes, yes, I like what you’ve done here…” (That’s a Mike Myers quote from Wayne’s […]

Email List Topic: Why Are We Not in Hyperinflation?

[UPDATE below.] On a private list of Austrian economists, someone asked about Krugman’s recent back-patting on the issue of interest rates and CPI inflation. Here’s what I said: (1) I regret that I have been one of the Austrians most guilty of prematurely sounding the (price) inflation alarm. In my defense, I first started going […]

Ten Things I Hate About the Efficient Markets Hypothesis

Well maybe not ten, but Scott Sumner hits a bunch of my pet peeves in this post: Commenters often present me with market anomalies, which supposedly “prove” the efficient markets hypothesis is wrong. I always respond that they’re just engaging in data mining. They retort that no theory that can’t be disproved is worth anything. But […]

Ferguson: A Crash Is Coming

I am not kidding when I tell people the economy is like Wile E. Coyote before he looks down. (And of course I didn’t invent that great metaphor.) I truly check the financial news every morning, wondering if the dollar had crashed earlier that hour. I was flipping through my radio yesterday and hit upon […]

The Dollar’s Demise?

Robert Wenzel has recently started the EPJ Daily Alerts. I try to check it out everyday; it reassures me to know Wenzel is out there, scouring the internet for new developments. (He’s not paying me to say that, but he’s also not charging me for the subscription.) In today’s Alert, Wenzel mentioned that the dollar […]