The European Monetary Union has failed to bring economic stability, and it has also increased nationalistic tensions among member nations. Some taxpayers, such as German taxpayers, view themselves as working to subsidize foreigners. Meanwhile, central banks continue to distort the economy.
Interviewed by host Paul Molloy, Mark Thornton discusses the consequences of having a minimum salary of $70,000. They also discuss the negative impact of the minimum wage, and how fair wage rates are determined by the market.
Asset-price inflation is being ignored as pundits focus on consumer goods. But if we look at asset prices, the carry trade, and commodities, we have reason to believe that the current boom is entering a stage similar to what we saw in 2007.
Europe’s problems will not be solved by a Greek exit, and a breakup of the euro certainly won’t fix things as long as the Europeans remain in the thrall of many economic fallacies that have long driven the debate over the euro.
The old tricks of conventional monetary stimulus — low interest rates — no longer work, so we've entered the untested waters of zero-interest-rate policy.
Physical cash has long been problematic for governments because it allows people to avoid the banking system, which in turn can lead to tax avoidance and bank runs. It’s much easier to control an economy when all money must remain in banks.
Recorded at the Mises Institute in Auburn, Alabama, on 24 July 2015.
Recorded at the Mises Institute in Auburn, Alabama, on 23 July 2015.
