Category: Economic Theory
The analysis published under this category are as follows.
Wednesday, October 07, 2009
The Fed's Schizophrenic Monetary Economists / Economics / Economic Theory
By: Gary_North
If monetary theory is accurate, it is a subset of general economic theory, which must also be accurate. Monetary theory is not an independent theory of human action that is divorced analytically from a general theory of human action.
Only the Austrian School of economics believes this and adheres to it in practice. All other systems of economic thought segregate monetary theory from general economic theory.
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Tuesday, October 06, 2009
Marx and Lenin Revisited / Economics / Economic Theory
By: Paul_Craig_Roberts
"Capital is dead labor, which, vampire-like, lives only by sucking living labor, and lives the more, the more labor it sucks." Karl Marx
If Karl Marx and V. I. Lenin were alive today, they would be leading contenders for the Nobel Prize in economics.
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Tuesday, October 06, 2009
Paul Krugman Would Fail as a Businessman / Economics / Economic Theory
By: Eric_Englund
Recently, I traveled to Idaho to meet with several customers over a two-day period. As a surety bond underwriter, I predominantly deal with small-to-medium sized public works and commercial contractors. My objectives, for each meeting, were to gain a better understanding of local market conditions, to see if a viable business plan was in place for each contractor, and to determine which clients would survive this vicious economic downturn.
Monday, October 05, 2009
Unemployment Economic Theory and the U.S. Dollar / Economics / Economic Theory
By: Howard_Katz
Gold made a quick dip to the $990 area on Friday and then whipped around to close above $1,000. We cannot completely rule out one final pull back to $960. However, the U.S. dollar is in free fall. So any dip in gold will be very brief.
Sunday, October 04, 2009
An Engineer's Solution for Sustained Economic Growth / Economics / Economic Theory
By: Steve_Morra
Sustained or increased economic chaos is the likely result of the public solutions offered for the worldwide macro-economic decline as of late 2009. Comparing simple historical economic data with public rhetoric, the solutions offered promise further economic decline past recession into depression and beyond for the vast majority of our micro-economic futures. It is time to publicly look at the “Golden Goose” in technical history to find a realistic solution with sustained economic growth.
Saturday, October 03, 2009
Financial Markets and World Economy Fingers of Instability / Stock-Markets / Economic Theory
By: John_Mauldin
Fingers of Instability
Ubiquity, Complexity Theory, and Sandpiles
Stability Leads to Instability
A Stable Disequilibrium
3 Billion and Counting
"To trace something unknown back to something known is alleviating, soothing, gratifying and gives moreover a feeling of power. Danger, disquiet, anxiety attend the unknown - the first instinct is to eliminate these distressing states. First principle: any explanation is better than none... The cause-creating drive is thus conditioned and excited by the feeling of fear ..." Friedrich Nietzsche
Tuesday, September 29, 2009
What Is Money? / Economics / Economic Theory
By: Gary_North
This question divides economists even more than it divides voters. Voters do not think much about this question. Economists think about it throughout their careers. They do not agree with each other regarding the answer.
The problem is, about half of American economists who specialize in monetary theory and banking policy are either on the payroll of the Federal Reserve System or sell their services to the FED on a piece-rate basis.
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Sunday, September 27, 2009
Reflections on the Great Inflation Deflation Debate / Economics / Economic Theory
By: Mike_Shedlock
Last week I was in an inflation vs. deflation debate on Financial Sense with Daniel Amerman. The debate was moderated by Jim Puplava. It is a credit to Jim that he is willing to entertain both sides of an argument even though he himself is an inflationist.
Friday, September 25, 2009
Paul Krugman's Identity Crisis, Lying to the American People / Economics / Economic Theory
By: Benjamin_Lee
Anyone who reads Paul Krugman, our latest "Nobel Prize-winning economist," knows that Krugman believes inflation is not a threat to the economy at all. He is a regular defender of large fiscal deficits and expansionary monetary policy, claiming that they are the road to salvation from our so-called deflationary spiral. (We'll ignore the fact that this "deflationary spiral" involves six straight months of price increases and regular complaints from Mr. Krugman himself about skyrocketing costs in health care.)
Wednesday, September 23, 2009
Government Spending, Money For Nothing / Economics / Economic Theory
By: Charles_Maley
Someone stole all my credit cards, but I won’t be reporting it. The thief spends less than my wife — Henny Youngman
Milton Friedman was a great American economist and statistician among other admirable things. He is best known among scholars for his theoretical and empirical research.
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Monday, September 21, 2009
The Flawed Theoretical Framework of Modern Economics / Economics / Economic Theory
By: Fred_Buzzeo
Economics is often referred to as the “dismal science.” This expression is traced back to Thomas Carlyle who claimed that economics “is not a gay science, I should say, like some we have heard of; no a dreary, desolate, and indeed quite an abject and distressing one; what we might call by way of eminence, the dismal science.”
Saturday, September 19, 2009
Academic Economists Lead Governments to the Edge of the Abyss / Economics / Economic Theory
By: Nadeem_Walayat
99.9% of academic economists living in ivory towers lost in world of their own formulae's and theories of what should happen and what could not happen not only did not see the crisis coming but far more dangerously led the government and central bank policy makers down a long winding garden path towards the edge of the financial and economic abyss. It was only after all of the economic theory was binned i.e. that which the academics had worked on and spouted for decades was financial armageddon avoided.
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Thursday, September 17, 2009
Is the Fed's Money Pumping Inflationary? / Economics / Economic Theory
By: Frank_Shostak
Given the recent, massive increase in commercial banks' excess reserves, many commentators are of the view that banks will sooner or later start employing these reserves in lending and thus cause an increase in the inflation rate.
Wednesday, September 16, 2009
The Fed Owns Most American Monetary Economists / Economics / Economic Theory
By: Gary_North
The Social Security system has long been described as the third rail of American politics. "Touch it, and you die." You get electrocuted. If you should somehow survive, the next subway train will cut you in pieces.
There is such a rail in academia: the Federal Reserve System.
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Monday, September 14, 2009
Unemployment And Stock Markets, Next Good News Or Great Depression? / Stock-Markets / Economic Theory
By: Andrew_Butter
The implicit and sometimes explicit promise of government is they will do "useful" things, like control inflation (both up and down through the genius of Inflation Targeting), keep "The Motherland" safe from aliens, bail out banks, create jobs and if they can be bothered, do things like organize assistance to hurricane victims like they did after Katrina. That's why people pay taxes, and more important, that's why they vote.
Sunday, September 13, 2009
1929 Great Crash, Depression, Then and Now Lessons From History / Economics / Economic Theory
By: Hans_F_Sennholz
Early 1955 finds the American public swamped by forecasts of prosperity and boom. Economic advisers to governments, corporations, universities, labor unions and other groups seem to have resolved in unison to assure the people that a depression like that of the 1930s has been banned forever from the American scene. "Americans need not fear a depression," they say. "Our government will carefully watch our economy and interfere when the need arises."
Sunday, September 13, 2009
Fiat Money a Tool for War to Kill Americans / Economics / Economic Theory
By: Robert_Murphy
A few years ago on these pages, I harshly criticized an article urging New Yorkers to "eat local," and went so far as to dub the young lady's column, "The worst economics article ever." I am here to report that her record has been smashed. Floyd Norris's recent New York Times article on the greenback is hands down the worst economics article I have ever read. Not only is it jam-packed full of false history, but it uses the falsehoods to justify monstrous crimes, both in the past and present.
Tuesday, September 08, 2009
How A Bear Can Be Bullish And Still Be Right / Stock-Markets / Economic Theory
By: EWI
Nico Isaac writes: Bob Prechter: the only good label is an Elliott wave label...
In recent months, Elliott Wave International President Bob Prechter has become something of a household name. In the final two days of August 2009 alone, Bob was mentioned by several news outlets from MarketWatch to the New York Times. The claim to his "fame" --
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Tuesday, September 08, 2009
When Keynesian Salvation Fails, Horrific Stimulus Trouble / Economics / Economic Theory
By: Jack_D_Douglas
On this Labor Day I got up before dawn, turned on CNBC and watched an hour long, free-wheeling discussion moderated by Maria Bartoromo among Jack Welch [GE CEO for decades], Fink [CEO and Chm. of Blackrock], Pandit [CEO of Citigroup] and about seven other major people at the top of U.S. Finance and Big Corps. They all agree we face many years of grim financial and economic and probably political developments.
Monday, September 07, 2009
Why Is Capitalism So Unpopular? / Politics / Economic Theory
By: Art_Carden
Henry Hazlitt once said that good ideas have to be relearned every generation. Among the intellectuals of our time, capitalism is wildly unpopular. This in spite of the fact that it is the only social system that has permitted prosperity and flourishing.