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Mihai Macovei



Articles by Mihai Macovei

Cronyism, Not Welfare, Is China’s Big Problem

27 days ago

After three decades of promarket reforms, extreme poverty in China has been virtually eradicated. So President Xi Jinping now has the leverage to shift his attention to reducing the wealth gap in Chinese society. In a speech to the Chinese Communist Party in August, Xi touted “common prosperity” for all Chinese as an essential requirement of socialism and modernization.
Western pundits have welcomed China’s drive for more income redistribution and consumption, but have also interpreted Xi’s move as an indicator of a possible descent into welfarism and a tightening of the regime’s control over the private sector.
But this is not necessarily the case. Rather the Chinese regime has shown a reluctance to sizably increase the size of its welfare state, even if its

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“Shortages” Aren’t Causing Inflation. Money Creation Is.

October 14, 2021

The current surge in inflation is not due to a shortage of supply as central banks want us to believe. It is primarily due to soaring consumer demand fueled by monetary creation.

Original Article:
For central bankers and mainstream analysts the recent inflation outburst is only a transitory phenomenon which has nothing or very little to do with the massive monetary and fiscal stimuli unleashed during the pandemic. Although the Fed has recently conceded that price pressures are persisting longer than expected, the surge of inflation is allegedly due to supply bottlenecks caused by the pandemic. This superficial diagnosis serves as a convenient excuse for politicians to keep in place damaging growth stimuli and draconian public health measures.

Inflation Is Not

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“Shortages” Aren’t Causing Inflation. Money Creation Is.

October 8, 2021

For central bankers and mainstream analysts the recent inflation outburst is only a transitory phenomenon which has nothing or very little to do with the massive monetary and fiscal stimuli unleashed during the pandemic. Although the Fed has recently conceded that price pressures are persisting longer than expected, the surge of inflation is allegedly due to supply bottlenecks caused by the pandemic. This superficial diagnosis serves as a convenient excuse for politicians to keep in place damaging growth stimuli and draconian public health measures.

Inflation Is Not Driven by a Shortage of Supply
Mainstream economists define inflation as an increase in consumer prices which occurs when the growth of money supply outpaces economic growth.1 In other words, too much

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The Case Against the New “Secular Stagnation Hypothesis”

August 14, 2021

Abstract: The new “secular stagnation hypothesis” developed by Lawrence H. Summers attempts to justify why the demand stimulus applied in the aftermath of the global financial crisis failed to revive growth in a satisfactory manner. Building on previous ideas of Keynes, Hansen, and Bernanke, Summers claims that excess savings together with feeble investment drove the natural rate of interest down to zero and advanced economies into stagnation. As the US monetary policy rate is not allowed to fall below the zero bound, Summers calls for “quantitative easing” and more expansionary fiscal policy to spur investment demand. This paper refutes Summers’s hypothesis by revealing its internal inconsistencies and presenting both theoretical arguments and empirical evidence

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Forced Vaccinations in France Bring Both Repression and Protest

July 23, 2021

[unable to retrieve full-text content]In a speech to the nation just ahead of Bastille Day on July 14 celebrating the French Revolution, President Emmanuel Macron delivered a paradoxical blow to the Republic’s famous slogan: Liberté, égalité, fraternité. He announced a series of measures to speed up the pace of covid-19 vaccinations which undermine individual liberties and threaten a strong political and economic backlash.

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