Booms and Busts

The early 1920 was the last time laissez-faire ideas were used to help the nation recover from a depression.

We need to shut down the machinery that allows government to enact its plans.

Reminiscent of a juvenile accepting a dare to do something stupid, the chairman of the Senate Banking Committee, Senator Christopher Dodd, crowed t

What is the right response to a recession? The first rule must be to do no harm.

We define a bubble as the outcome of activities that have emerged on the back of the loose monetary policy of the central bank. In the absence of monetary pumping, these activities would not have emerged.

In the present article I am not taking a stand on whether price inflation will be high or low in 2008.However I will say this: If you are revising your inflation forecasts downward because of your expectation of sluggish economic growth, you might want to rethink that logic.

It is paramount for a free society to ensure, in the marketplace of ideas, that only good ones, based on sound theory and history, take root.

Agriculture has been left in the dust, but it won't stay there.

The increase in monetary pumping however sets in motion a new boom-bust cycle. Also, once economic activity starts to recover on its own (as a result of the improvement in the pool of real funding) any "help" from the Fed can only slow down the process of recovery.