Mises Search

Abstract: In response to the COVID-19 lockdown policies, Guerrieri et al. (2020) developed a new concept: the Keynesian supply shock. A Keynesian supply shock is an aggregate supply shock that leads to an even larger aggregate demand shock. This paper suggests that Keynesian supply shocks are very similar to the secondary deflations suggested by

Abstract: In response to the COVID-19 lockdown policies, Guerrieri et al. (2020) developed a new concept: the Keynesian supply shock. A Keynesian supply shock is an aggregate supply shock that leads to an even larger aggregate demand shock. This paper suggests that Keynesian supply shocks are very similar to the secondary deflations suggested by

Labor shortage “fun” fact:Inflation-adjusted weekly median earnings JUMPED in the 2nd quarter of 2020 (probably because so many low-wage workers got laid off), but have been steadily falling since then, and are now at the same level they were in the 4th quarter of 2019. Meanwhile if we don’t adjust for inflation, we see the same jump in the 2nd

Our economic policymakers stand at a crossroads. Crises like the one we face now present unique opportunities for governments to try new things, and to choose the path of the economy in the years ahead. Today, we have the opportunity to adopt policies that will encourage either future stability or future crises like the one we have now. Government

ABSTRACT: According to Austrian business cycle theory (ABCT), there is no macroeconomic market failure. Under laissez faire capitalism, with extremely limited or no government, there will be no credit-induced business cycles. However, suppose one part of the world engages in credit expansion, which, according to ABCT creates the business cycle,

[ Editor’s Note: In this selection from “ Is the Virus of International Macroeconomic Interventionism Infectious? An ABCT Analysis “ in the newest issue of Quarterly Journal of Austrian Economics, the authors analyze how a commodity-money-based economy would be effected by neighboring economies still using fiat money. The authors note that the

Volume 18, Number 1 (Spring 2105) ABSTRACT : This is a brief reply to “The Marginal Efficiency of Capital: Rejoinder.” I explain that I never intended to defend Keynes against Fuller’s (2013) criticism. Rather, I intended to highlight that Keynes’s conclusions rest on a key shortcoming in Keynes’s theory: the assumption of sticky factor prices.

This weekend, I had the pleasure of traveling to Grove City College in Grove City, PA to attend the Austrian Student Scholars Conference . I was a mere observer at this event – but what I observed was good scholarship and great fun.The Conference kicked off on Friday night with dinner (Beef Stroganoff) and mingling with the fellow scholars. That

Charles Davi over at The Atlantic recently wrote an article detailing a particular example of “market failure” – the so-called “coordination failure”. Here, I hope to offer a largely Austrian view of this “failure”. In the end, we’ll see that a proper understanding of the problem will eliminate any valid role for government. Davi presents us with

Okay, so I’ve been looking at the Mercatus numbers . First, Think Progress IS wrong in their representation. (Think Progress makes the very simple error of acting like an ADDITION to cost is the WHOLE cost.) HOWEVER,  my initial impression was also wrong. My error was a bit more complicated – I assumed constancy in some things that weren’t