Category: Economic Theory
The analysis published under this category are as follows.
Sunday, July 17, 2011
Back to Economic Basics GDP = C + I + G + Net Exports / Economics / Economic Theory
By: John_Mauldin
This week we are going to revisit some themes concerning the problems of the debt and the deficit. I am getting a number of questions, so while long-time readers may have read most of this in one letter or another, it is clearly time for a review, especially given the deficit/debt-ceiling debate. I will probably offend some cherished beliefs of most readers, but that is the nature of the times we live in. It is the time of the Endgame, where things are not as black and white as they have been in the past.
Monday, June 13, 2011
The Keys to Economic Growth and New Jobs / Economics / Economic Theory
By: Dr_Ron_Paul
Recent economic data show that U.S. job growth in May was negligible, while the official unemployment figure-- at least the figure the Labor Department admits to-- rose to 9.1%. The real unemployment figure, however, as compiled by economist John Williams, may well be higher than 20%. It is clear the U.S. economy is in terrible shape, and that no amount of government spending or Federal Reserve quantitative easing can reduce unemployment, increase real productivity, or address our debt fiasco.U.S. jobs and productivity are dependent on the accumulation of private capital to finance existing businesses or fund new entrepreneurial activity. Private capital-- whether accumulated by profitable U.S. businesses, invested by private equity and venture capital firms, or attracted from abroad-- is the key to economic growth and new jobs. But we cannot create jobs if we demonize profits, punish risk-taking capitalists, and stay hostile to foreign investment.
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Thursday, May 12, 2011
Macro Economic Theory Confusion on Inflation, Commodities, and the Fed / Economics / Economic Theory
By: Kel_Kelly
A recent discussion regarding commodity prices on CNBC consisted virtually of sentence-by-sentence errors with respect to macroeconomic theory. Most of the misstatements involve either accidentally or intentionally — I don't know which — attributing economic and financial market events to various incorrect or misleading cause-and-effect scenarios, when the real explanation is simply the government's creation of money and credit.
Wednesday, May 11, 2011
The Economy When Capital Is Nowhere in Sight / Economics / Economic Theory
By: Jeffrey_A_Tucker
A Travel Channel episode of No Reservations, a cooking-focused show narrated by Anthony Bourdain, took viewers to Port-au-Prince, Haiti. I had heard that the show offered unique insight into the country and its troubles. I couldn't imagine how. But it turns out to be true. Through the lens of food, we can gain an insight into culture, and from culture to economy, and from economy to politics and finally to what's wrong in this country and what can be done about it.
Monday, May 09, 2011
The Upside-Down World of Modern Monetary Theory / Economics / Economic Theory
By: Robert_Murphy
Modern Monetary Theory (MMT) is a hip economic/financial paradigm apparently sweeping a world unsatisfied with mainstream economics. Over the past year, I have been hearing a growing number of people refer to MMT: either fans who think it blows up my Austrian views, or foes who think it deserves a full-scale critique.
Friday, April 29, 2011
Dyseconomics: The New Macro Econ and The Greatest Economic Boom Ever / Economics / Economic Theory
By: Submissions
Cetin Hakimoglu writes:
*warning the views of this summary may appear bunt, infuriating, and or egregious, but this is my analysis about why things are the way they (normative economic Natalie Bassingthwaighte s) versus a populist feel-good rant about the fed or shadow banking. *
Thursday, April 21, 2011
Fear the Economic Boom, Not the Bust / Economics / Economic Theory
By: MISES
Patrick Barron writes: All of the industrial world's central banks and public treasuries currently are engaged in an impossible exercise — trying to reinflate an artificially created boom through zero interest rates and deficit spending. The reality is that the current financial crisis was caused by central-bank money expansion, so it cannot be cured by further money expansion. It is as if a doctor is continuing to bleed a patient who is already bleeding to death.
Sunday, April 17, 2011
The Cancer of Socialism Infecting the United States / Politics / Economic Theory
By: Nadeem_Walayat
The following text is excerpted form the NEW The Stocks Stealth Bull Market Update 2011 70 page ebook is available for FREE Download. Chronic economic under performance by much of Europe as most notably illustrated by the bankrupting PIIGS is as a consequence of socialism, where the greater the degrees of socialism implemented the greater the economic under performance observed, where governments rely upon unsustainable inflationary deficit spending, money printing to give the illusion of temporary prosperity as a consequence of socialist policies that always eventually bankrupt economies.
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Sunday, April 10, 2011
Why Do People Hate John Maynard Keynes? / Economics / Economic Theory
By: Mike_Whitney
Anyone who spends time on the economics blogs knows that Keynes is blamed for everything from the Wall Street bailouts to quantitative easing. But, why? There's nothing in Keynes "The General Theory of Employment, Interest and Money" that suggests that he would have supported the bailouts or QE2. Yes, he would have made sure the financial system didn't collapse, but that doesn't mean he would have issued blank checks to insolvent financial institutions run by crooked bankers.
Friday, April 08, 2011
The Free Trade Theory That’s Killing America’s Economy, Why It’s Wrong / Economics / Economic Theory
By: Ian_Fletcher
I wrote in a previous article how America’s disastrous embrace of free trade is ultimately based on a false theory of how the global economy works: the so-called Theory of Comparative Advantage. This is what economists, from the government on down, believe in. This matters.Read full article... Read full article...
Thursday, April 07, 2011
The Free Trade Theory of Comparative Advantage / Economics / Economic Theory
By: Ian_Fletcher
You can read about the free trade controversy for months and never hear about it. But in the minds of real economists, it’s there all the time, and it’s big. I’m talking about the so-called theory of comparative advantage, the theoretical lynchpin—in the view of free traders and protectionists alike—of the case for free trade. It has an unfortunate reputation for being too technically tricky for non-economists to understand, but I think this is a shame, because this myth tends to shut ordinary concerned citizens out of the debate. Therefore, I’d like to take a shot at explaining this theory.Read full article... Read full article...
Tuesday, April 05, 2011
The Low Interest Rate Economic Cure is the Disease / Interest-Rates / Economic Theory
By: Thorsten_Polleit
As a reaction to the global financial and economic crisis, central banks around the world have cut their interest rates to the point of disappearing, because they see low interest rates as being conducive to making economies return to growth and prosperity.
According to the Austrian School of economics, however, the latest crisis has been brought about by a monetary policy of artificially suppressing the interest rate; and pushing interest rates down even further will only make matters worse.
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Wednesday, March 30, 2011
Why Religious People Struggle with Economics / Politics / Economic Theory
By: Jeffrey_A_Tucker
For years I've puzzled over the question of why religious people have such trouble coming to terms with economics. This problem applies only to modern religious people, for it was Catholics in 15th- and 16th-century Spain who systematized the discipline of economics to begin with. That was long ago. Today, most of what is written about economics in Catholic circles is painful to read. The failing extends left and right, as likely to appear in "progressive" or "traditionalist" publications. In book publishing, the problem is so pervasive that it is difficult to review the newest batch.
Tuesday, March 29, 2011
Economists Are Hopelessly Naive About International Trade / Economics / Economic Theory
By: Ian_Fletcher
The economics profession, or well over 90 percent of it according to polls, continues to support free trade. Above all, most economists remain stuck in a cheery “win-win” fantasy of how trade works and are unable to see the brutally adversarial dynamics of trade in the real world.
Friday, March 25, 2011
Independant Investor Ebook 2011 - Free Download / InvestorEducation / Economic Theory
By: EWI
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Wednesday, March 16, 2011
Corporate Cash Stash Soars to $1.9 Trillion, Maybe Marx Was Right After All... / Economics / Economic Theory
By: Mike_Whitney
Two and a half years have passed since Lehman Brothers collapsed and US consumers are still digging out.
Last Thursday, the Fed released its “flow of funds” report which showed that households had trimmed their debt to $13.3 trillion in the forth quarter (4Q). But the crucial debt-to-income ratio remains significantly above trend at 120.9%. That means that consumers will have to cut their spending even more.
Friday, March 11, 2011
Free Trade Theory Known to be Wrong—Since 1817! / Economics / Economic Theory
By: Ian_Fletcher
The economic argument for free trade is ultimately based on the theory of comparative advantage, invented by David Ricardo in 1817. Ricardo was a London stockbroker, self-made millionaire, and Member of Parliament who became a self-taught economist.
Monday, March 07, 2011
Rick Santelli Needs Austrian Economics to Refute Insufferable Keynesians / Economics / Economic Theory
By: LewRockwell
Mark R. Crovelli writes: In the world of financial "journalism," CNBC’s Rick Santelli stands out as a refreshing and intelligent antidote to the hoards of perma-bulls, fed apologists, and chart sorcerers that otherwise pollute the financial airwaves. Apart from his wonderfully energetic and quirky manner of speaking, and apart from his fantastic last name, Santelli is never afraid to challenge economists, Fed officials, and other mainstream talking heads. Talking points that are taken for granted or left unchallenged by Santelli’s mind-numbing colleagues are passionately attacked by the bond-tracking Italian dervish.
Friday, March 04, 2011
Capitalism and Socialism / Politics / Economic Theory
By: Art_Carden
How many times have you heard "capitalist" used as an epithet or a put-down? How many people do you know who use variations on "capitalism" to describe pretty much anything they don't like? It's a vice that cuts several ways. As the tea-party movement has risen to prominence, how often have you heard people denounce President Obama as a socialist?
Thursday, March 03, 2011
Caught: Krugman's Shifting Arguments / Economics / Economic Theory
By: Robert_Murphy
It's not newsworthy when Paul Krugman contradicts himself. However, in two recent blog posts on the varying economic fortunes of US states, Krugman's about-face was so complete and so fast that I just have to share.