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The Paradox of Keynesianism
The very foundation of Keynesianism is based on a fallacy – the Paradox of Thrift. Paul Krugman explained this alleged paradox in one of his New York Times editorials: Some background: one of the high...
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Trickle Down Isn’t Trickle Down Anymore
The justification of ZIRP/QE has been largely based, in the real economy outside subsidizing bank lending, on the premise that low interest rates stir additional or incremental borrowing. The...
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The Tremendous Difference Between Jobs and ‘Jobs’
I know too well that the current thinking on the economy and labor is that any activity is “good” activity, and thus better something happens than resources remain idle. I think that notion is easily...
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No Rate Hikes Because FOMC’s Models Don’t Even Believe the Unemployment Rate
If there is any doubt as to the confusion inside the FOMC, one needs only to examine its models. The latest updated projections make a full mockery of both monetary policy and the theory that guides...
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Unbreaking Okun
There was a robust debate inside economics earlier in the recovery period over Okun’s “Law”, the seemingly stable relationship between the unemployment rate and real GDP. The Great Recession was...
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Again?
It is more than interesting that Herbert Hoover has become the modern ideal of the liquidationist. In these very trying times, one is either that or a Keynesian, Hoover’s supposed opposite, an...
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Listen To China: Managed Decline, Not ‘Stimulus’
So much of the growth scare scenario relies upon China’s willingness to end it. By count of conventional Economics, there cannot be a case where a country like China just sits back and lets the economy...
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Not COVID-19, Watch For The Second Wave of GFC2
I guess in some ways it’s a race against the clock. What the optimists are really saying is the equivalent of the old eighties neo-Keynesian notion of filling in the troughs. That’s what government...
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