Blaming deflation
Alasdair Macleod – 20 June 2014 With the Eurozone going to the extreme of negative interest rates and the IMF belatedly revising downwards their expectations of US economic growth, deflation is now the...
View ArticleGibson’s Paradox
Alasdair Macleod August 2015 Introduction Thomas Tooke in 1844 is generally thought to be the first to observe that the price level and nominal interest rates were positively correlated. It was Keynes...
View ArticleEconomics of a crash
Alasdair Macleod 27 August 2015 This month has seen something that happens not very often: it appears to be the early stages of a global stock market crash. For the moment investors are in shock,...
View ArticleThe declining interest rate cap
Alasdair Macleod 12 November 2015 Believe it or not, one of the topics in economics that confuses macroeconomists is the actual role of interest rates. For the most part they just assume that an...
View ArticleThe endgame
And how we got here There is a growing fear in financial and monetary circles that there is something deeply wrong with the global economy. Publicly, officials and practitioners alike have become...
View ArticleWhy Say’s law is always true
One of my regular readers has raised the important subject of Say’s law, the denial of which both Keynesian and modern monetarists are emphatic. They need this fundamental axiom to be untrue to justify...
View ArticleThe root cause of monetary confusion
Arguments about sound and unsound money often degenerate into a them-and-us dispute, with the supporters of unsound money casting sound money proponents as impractical out-of-date libertarian weirdos....
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