2020-07-23

Bank lending is contracting, and it is important to understand why. At this stage of the credit cycle, which began expanding following the aftermath of the Lehman crisis over a decade ago, a sharp contraction of bank credit to nonfinancials is normal.

2020-07-24

MMT starts to make a little more sense when thinking of it as comparable to money systems used under the USSR and the old Soviet Bloc.

2020-07-30

The rising unemployment comes partly as a result of state governments forcing the closures of some businesses, or restricting operations, in the name of mandatory social distancing.

2020-08-10

Judy Shelton, a Trump nominee to the Fed Board of Governors, may not have coined the excellent term "Fed Bug," but she used it to delicious effect in this 2019 Financial Times interview:
“People call me a goldbug, and I think, well, what does that make them? A Fed bug,” she says.

2020-08-14

Negative interest rates have long since become a reality. But we are not talking about negative real interest rates. This is the case when the return on an investment is lower than the officially stated inflation rate. In today’s context, negative interest rates are rather negative nominal interest rates; that is, the nominal interest rate is below 0 percent.

2020-08-20

Measured in dollars, the current bull market for gold started in December 2015, since which its price in dollars has almost doubled. Other than the odd headline when gold exceeded its previous September 2011 high of $1,920, only gold bugs seem to be excited.

2020-08-23

One problem that any laissez-faire liberal thinker must face is: Granted that government interference should be minimal, what form should that government take? Who shall govern?

2021-01-10

On Wednesday, a mob apparently composed of Trump supporters forced its way past US Capitol security guards and briefly moved unrestrained through much of the capitol building. They displayed virtually no organization and no clear goals.