Tag Archives: Great Depression

What is it about money?

I was going to hold off blogging until the New Year, but irritation drove me to posting … In a recent article, Alan Kohler had this to say: The real war is between monetary policy and the Digital Revolution – between the world of finance trying to reduce the value of money and therefore debt, […]

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 […]

Ben Bernanke, the Fed and the Tea Party

Ben Bernanke is not a Tea Party sort of person. An academic appointed as Chair of the US Federal Reserve (“the Fed”) by a Republican President (Bush II) and re-appointed by a Democrat President (Obama) who helped organise the bailout of Wall St in response to the Global Financial Crisis (GFC), he is the epitome of […]

Bubble trouble: not an easy money problem

The notion that “easy money” created asset booms is levelled (famously by Austrian school economists such as von Mises and Hayek) against the 1920s boom and by a range of commentators about the Great Moderation boom. In both cases, the Fed (dominated by Benjamin Strong as New York Fed Governor up to 1928 and by Alan Greenspan as Fed Chair 1987-2006) is held to be to […]

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 […]

Something obscurantist this way comes

I recently had the unexpected experience of reading a book that appalled me; this is not a reaction I can remember having to a book before. The book has a title I agree with: Ideas Have Consequences. Regarded as a classic text of  postwar American conservatism, the book is a long jeremiad at the corruption […]

Broken by the fix

What do the goldzone Great Depression (1929-3?) and the Eurozone Great Recession (2008-?) have in common? They were both created by European central banks with the US Federal Reserve (the Fed) as accessory during and after the fact. (Yes, the monetary shock which set off the Great Recession started in Europe though the responsibility of the […]

Going for gold: perils of entering the goldzone

Who would want the global monetary system to be at the mercy of the Bank of China?  Not conservative, free market types in the United States and elsewhere, one guesses. Actually, it turns out lots of them do; all the people who support some sort of return to the gold standard, who think that the […]

Some Thoughts on Lorenzo on Austrian Economics (guest post by Steven Horwitz)

This is a guest post by Steven Horwitz which was originally posted at Critical Thinking Applied but which Dr Horwitz has kindly agreed to be also posted here. Dr. Horwitz is the Charles A. Dana Professor of Economics at St. Lawrence University in Canton, NY. He is the author of two books, Microfoundations and Macroeconomics: An Austrian Perspective (Routledge, 2000) and Monetary […]