Did most economists really understand the money multiplier and endogenous money before the crisis? The evidence says they didn’t.
Category: Most Recent Stories
China PMI Misses
Flash China Manufacturing PMIâ„¢ at 48.1 in March (48.5 in February). Eight-month low.
Would Keynes Have Called this a “Liquidity Trap”?
“after the rate of interest has fallen to a certain level, liquidity-preference may become virtually absolute in the sense that almost everyone prefers cash to holding a debt which yields so low a rate of interest. In this event the monetary authority would have lost effective control over the rate of interest.”
The Infiltration of Economics
One of the most exciting macro trends driving the world today is the incredible dissemination of information and knowledge through the internet. We are all more interconnected than we’ve ever been. And we have access to people, information and knowledge like never before.
3 Reasons NOT to Tap Into Home Equity To Buy Stocks
If you hate your money don’t read this post.
Rail Traffic Continues to Show Expansion
Rail traffic continues to show signs of growth here as intermodal traffic surged 11.9% in the latest week. This data can be volatile at times, but the 12 week moving average remains fairly healthy at 3.2%. No major change in trend and still, in my opinion, consistent with a muddle through economy.
The Money Multiplier Doesn’t Exist Outside of the Zero Lower Bound Either
I bashed the Austrians today so I might as well go ahead and bash the Keynesians while I am at it….
The Bank of England Goes [Insert Your Ideology Here]
Did the Bank of England just confirm your economic ideology? Probably not….
Will the Bank of England’s Report on Endogenous Money Change Anything?
David Graeber wrote a good piece in the Guardian yesterday regarding the Bank of England’s research on endogenous money. Unfortunately, I don’t share David’s enthusiasm for how impactful this might be….