Tag Archives: Eurozone crisis

Money, prices, assets and evasions of responsibility

Understanding the equation of exchange can help see what a massive evasion of institutional responsibility lies behind the Great Recession and the Eurozone crisis. Economist Irving Fisher developed the original algebraic formulation of the equation of exchange, in his The Purchasing Power of Money (1911): MV = PT Money x Velocity = Prices x Transactions. Fisher’s use of […]

The real convenience of money

I recently read Adam Fergusson’s history of the early 1920s hyperinflation in Weimar Germany–which also covers contemporary hyperinflations of Austria and Hungary. (Well-spotted if you noticed that they were the losing Powers of the Dynasts’ War–aka WWI; this was not a coincidence.) One of the striking things about the period is how misguided conventional wisdom […]

On simplifying without simplification

[Every now and then, the law throws up something really fascinating. This week’s exercise in fascination was instructions to prepare a briefing note on the causes and consequences of the global financial crisis, directed at yours truly. What made these instructions so difficult to follow is that while the causes and consequences of the GFC […]