Category Archives: Tweets
“If I were responsible for the monetary policy of a country I would certainly try to prevent a threatening deflation, that is, an absolute decrease in the stream of incomes, by all suitable means, and would announce that I intended … Continue reading
“The direct effect of a bursting bubble on measured output is zero. Nor, by the way, is a fall in asset prices counted as a decline in the capital stock, which is in principle measured in physical terms.” — Paul Krugman
“It does not follow [from the fact that a disequilibrium generating inflation cannot be allowed to expand forever] that we should not endeavour to stop a real deflation when it threatens to set in. Although I do not regard deflation … Continue reading
At about 10 or 11 minutes John Papola has an interesting bit on how Murray Rothbard and David Friedman answered Hayek’s challenge envision an inspiring liberal utopia. But the whole thing is interesting. Papola is one of the creators of … Continue reading
The graph explained.
Part IV of Hayek’s The Pure Theory of Capital is the chimeric “unwritten” 2nd “volume” of Hayek’s Pure Theory, the monetary part that goes beyond the “barter economy” and considers the phenomena of interest and production coordination and dis-coordination when … Continue reading