Economist and Mises Institute Associated Scholar Robert Ekelund recently teamed up with former US Senator Phil Gramm and John Early to write The Myth of American Inequality: How Gernment Biases Policy Debate. The book was released this month by Rowman and Littlefield Publishers. In it, the authors explore some of the many ways that the debate over inequality in the United States is based on bad research, bad data, and a variety of other misconceptions. I recently...
Read More »Molinari Explains the Difference between Monarchy and Popular Government
With the impending burial of the United Kingdom’s Queen Elizabeth II, republicans from London to Sydney have ramped up their efforts to end the British monarchy. The resulting war of words between monarchists and their opponents has highlighted the sheer diversity of opinions over the desirability of monarchy. Indeed, it would be impossible to enumerate all the different criteria on which different groups and individuals judge monarchy as an institution. However, for...
Read More »Government Intervention into International Currency Exchange Rates: Japan as a Case Study
The recent hefty depreciation of the yen to a twenty-four-year low against the dollar has raised eyebrows due to the yen’s traditional safe haven role in times of turmoil, such as the war in Ukraine. The yen’s decline had already started when major central banks signaled a tightening of monetary policy to fight inflation while the Bank of Japan (BoJ) doubled down on its loose monetary policy and zero target for ten-year bond yields. The depreciation accelerated...
Read More »Powell’s Pivot to “Pain” but No Gain: Triggering the Coming Recession
Jay “The Inflation We Caused Is Transitory” Powell finally did it. On Friday, the Fed chair finally mustered the courage to say that he is going to do the job he has been hired to do: the Fed will not “pivot” to cut interest rates until inflation slows meaningfully and persistently—even if the stock, bond, and housing bear markets become much worse and the economy goes into recession. Powell’s Speech Translated Below we provide key quotes from Powell’s Jackson Hole...
Read More »The Fed Is Wrong to Make Policies Based upon the Phillips Curve
Speaking at Jackson Hole, Wyoming, on August 26, 2022, the chair of the Federal Reserve, Jerome Powell, said the Fed must continue to raise interest rates—and keep them elevated for a while—to bring the fastest inflation in decades back under control. Powell said that a tighter interest rate stance is likely to come at a cost to workers and overall growth. However, he holds that not acting would allow price increases to become a more permanent feature of the economy...
Read More »Insatiable Government
[This essay, which exposes the big-government policies of the Hoover administration, was first published in the Saturday Evening Post, June 25, 1932.] In the minutes of the Chicago City Council, May 12th last, is the perfect example of how commonly we regard public credit. From bad taxation, reckless borrowing and reckless spending, the city of Chicago had so far prejudiced its own credit that for months it had been unable to meet its municipal payrolls either out...
Read More »August’s Price Inflation Soared, and That Means Earnings Fell Yet Again
The federal government’s Bureau of Labor Statistics released new price inflation data today, and the news wasn’t good. According to the BLS, Consumer Price Index (CPI) inflation rose 8.3 percent year over year during August, before seasonal adjustment. That’s the seventeenth month in a row of inflation above the Fed’s arbitrary 2 percent inflation target, and it’s six months in a row of price inflation above 8 percent. Month-over-month inflation rose as well, with...
Read More »Promoting Natural Rights Instead of Conservatism: Looking at Rothbard and Jaffa
This is the story of a man, an intellectual, born after World War I, who spent studying his university years in New York and became acquainted and studied under German Jewish émigré who fled the Nazi regime in Germany, later becoming mentor and protégé. That man belonged to the political Right, taught in two different universities during his lifetime, the first one in the Eastern United States, the second in the Western part of the country, was cast out of more...
Read More »Short-Term Market Volatility Is Not Entirely Random
Over the present year we have experienced record-breaking price inflation, a series of interest rate hikes, and an overall fall in stock prices. It is widely accepted that there is a bubble. A good way for Misesians to measure this is by comparing the price of capital (stock prices) to its replacement cost (book value). A normal ratio for the overall market should be close to one. Such a ratio means that value is being properly imputed, and that the structure of...
Read More »Democracy without Foundations
In last week’s column, I criticized Jedediah Purdy for the ignorance of economic theory on display in his Two Cheers for Politics. Fortunately, the book contains much of interest, reflecting the author’s wide knowledge of the history of political philosophy. I have to say, though, that the main argument of the book strikes me as utterly unconvincing. Purdy starts off well. He asks, Why are people living today bound by past political arrangements to which they have...
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