Category Archives: Boom & Bust

Axel Leijonhufvud on the Causes of the Current Crisis

Posted on April 13, 2012 by Greg Ransom

From Axel Leijonhufvud’s INET Berlin paper “The Unstable Web of Contracts”: “The bubble that burst was caused by a lengthy period of interest rates that were too low. We are now trying to cure the consequences by maintaining still lower … Continue reading →

Posted in Boom & Bust | 1 Comment

VIDEO – William White at the Berlin INET Conference

Posted on April 13, 2012 by Greg Ransom

Beginning at about the 5:30 mark former BIS chief economists William White explains why the Keynesian “solution” has failed and why the “Hayek vs Keynes” debate is one again: I’d also recommend Roman Frydman’s case against the Phelps / Lucas … Continue reading →

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An important podcast on shadow money & the boom and bust cycle

Posted on February 27, 2012 by Greg Ransom

I recently came across a terrific Bloomberg On The Economy podcast with James Sweeney and Carl Lantz on “shadow money” — assets which are used as the equivalent of money during the snowball of the asset bubble / artificial boom. … Continue reading →

Posted in Boom & Bust, Money, shadow money | 2 Comments

AUDIO — HAYEK & THE CURRENT CRISIS

Posted on March 28, 2011 by Greg Ransom

Economist John Cochran explains the significance of Hayek’s macroeconomics for understanding the boom of the ’00s’ and ongoing bust of the ’10s.

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ARTICLE: OVERINVESTMENT & THE VICIOUS CYCLE OF MANIAS & CRISES

Posted on March 24, 2011 by Greg Ransom

“A Vicious Cycle of Manias, Crises and Asymmetric Policy Responses:  An Overinvestment View” by Andreas Hoffmann & Gunther Schnabi.  Abstract: Over the past three decades, we find that asymmetric policy responses heavily contributed to manias and bursting bubbles that eventually … Continue reading →

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HAYEK’S MACRO IS THE BEST EXPLANATION — BRAD DELONG

Posted on March 22, 2011 by Greg Ransom

It would be very hard to explain the current recession using Hayek’s macroeconomics in fewer words than has been achieved by Hayekian macroeconomist Brad DeLong: After the most recent downturn, however .. things have been different. The downturn was not … Continue reading →

Posted in Boom & Bust, Brad DeLong | 4 Comments