What Can We Believe in the Debate on Inflation?
An ordinary citizen can hardly be blamed if he or she is confused about what is causing inflation. Democrats have pointed to many other villains other than themselves for the … Read More
Tag: Inflation
Concerning the generation and halting of inflation
Coronavirus Lockdowns and the U.S. Economy, April 2020
The worldwide pandemic of COVID-19 has replaced the trade war with China as the dominant influence on the U.S. economy. Coronavirus lockdowns are destroying the economy. Not that the pandemic … Read More
How Big A Problem Is Inflation For Stock Markets?
Inflation caused by increases in economic demand predicted by the law of Supply and Demand. Wikimedia Commons / SilverStar at English Wikipedia One often mentioned explanation for plunging stock markets has … Read More
The Japanese Economy is Stalling Out
Shinzo Abe, Prime Minister of Japan Wikimedia Commons/US Embassy, Tokyo From the Wall Street Journal we learn that Japanese economic growth nearly sputtered out in the second quarter of 2016. … Read More
A Closer Look at the Index of Economic Freedom
World Map of the WSJ/Heritage Foundation Index of Economic Freedom Image Credit: Heritage Foundation In a number of posts I have used the Wall Street Journal/Heritage Foundation Index of Economic … Read More
The Keynesian Emperors Have No New Clothes!
The Emperor has no new clothes! Image Credit: Wikimedia Commons/Vilhelm Pedersen (1820-1859) Given all their failures in suggesting successful economic policies around the world, one would have thought … Read More
Europe’s Monetary Experiment Not Working!
How can we get a little inflation around here?! Photo Credit: Canstockphoto.com/Bialasiewicz Do you remember how the European Central Bank (ECB) decided to try to add more zing to the Eurozone’s economy … Read More
Rational Expectations, Market Clearing, and Real Business Cycles
The University of Chicago, where much of New Classical Economics was built by Robert Lucas, Jr. Photo Credit: Wikimedia Commons In my last post I began an examination of what … Read More
The Phillips Curve in New Keynesian Economics
The original Phillips curve for the U.S. fit to 1960s data. A non-economist might justifiably be confused about why the Federal Reserve, the European Central Bank (ECB), and the the … Read More
U.S. Stock Markets and the Economy, February 2016.
Investors in the stock market getting their thrills! Wikimedia Commons/Boris23 The last few weeks with the stock markets have certainly been an exciting roller coaster … Read More
A Replacement for Keynesian Monetary Policy
How many of these should we make? Image Credit: Freeimages.com/Tracy Olson As the world confronts the smoking ruin of Keynesian monetary policy [see the posts Economic Damage Created … Read More
BOJ Also Losing Credibility And Its QE War
Haruhiko Kuroda, Governor of the Bank of Japan Photo Credit: Wikimedia Commons/Asian Development Bank Move over Federal Reserve! You are not the only ones losing credibility and in the dog … Read More
The Insanity of Negative Interest Rates
Alice entering the domain of the European Central Bank Image Credit: Wikimedia Commons/John Tenniel (1820-1914) (PD-US) Europe has now officially entered into the world of Alice in Wonderland! The European … Read More
Whatever Will We Do About the Fed?
Federal Reserve Building, Washington DC Photo Credit: Flickr.com/wwarby Last September 10, I commented on Senator Richard Shelby’s Financial Regulatory Improvement Bill in A More Accountable Fed. Greg Ip in The … Read More
Failures of New Keynesian Economics
The wreck of an elegant model! Photo Credit: Flickr.com/Kevin Hutchinson The New Keynesian economics is such an elegant mental construct that it is … Read More
How New Keynesians Explain 1970s Stagflation
Dr. Jimmy Carter’s Stagflation Advice: “I’m Going To Give It To You Straight—I Don’t Have Any Idea What I’m Doing.” … Read More
New Keynesian Adjustments for Inflation
One view of what to do with too much money! Photo Credit: CanStockPhoto.com/dolgachov (c) Can Stock Photo [NOTE: Edited on 11/13/2015 to ensure proper interpretation of the Taylor … Read More
Inside the Mind of a New Keynesian
A New Keynesian’s Brain Image Credit: FreeImages.com [NOTE: Edited on 11/13/2015 to ensure proper interpretation of the Taylor Rule.] There can be no doubt … Read More
Blowing Up the New Keynesian Model
Demolition Explosion! Photo Credit: U.S. Department of Energy I am beginning to see suggestions that it is time to blow up New Keynesian economics to smithereens … Read More
What Does Falling Money Velocity Tell Us?
A falling dollar? Image Credit: Flickr.com/Horia Varlan In our last post, Should We Expect Inflation or Deflation?, we discovered several things about why … Read More
Should We Expect Inflation or Deflation?
Money balloon being popped! Image Credit: CanStockPhoto.com/jgroup Among the most confusing questions of the last decade is whether we are currently in an inflationary economic environment, … Read More
Monetary Rules
Left to their own devices, the Federal Reserve’s Federal Open Market Committee will more often than not adopt a policy of “easy money”. Rather than adopting a monetary policy that … Read More