AUSTERITY IN A TIME OF PLENTY: The “domestic default” boogeyman = More bad statistics from Reinhart & Rogoff

According to Reinhart and Rogoff the danger is both outright (de jure default) and de facto default from inflation and financial repression. However, like their discredited “growth” paper, the “default” argument is also based the on the improper use of statistics.

The Autocorrelation of Hyperinflation (about 7 events, not 58)

According to a CATO working paper (Hanke and Krus 2012), there have been 56 cases of hyperinflation. 58 if we include North Korea (they weren't sure about the data quality) and Venezuela (which occurred after their paper). There are several things I would like to point out that relate to recent twitter threads on hyperinflation … Continue reading The Autocorrelation of Hyperinflation (about 7 events, not 58)

Book free on Amazon for 48 hours! (Kindle)

Hello everyone- I am making a Kindle version of 1000 Castaways: Fundamentals of Economics FREE on Amazon for reviewers for a short time - but anyone here can take advantage of this and get their free copy. It is free for the next 48 hours  (all day Sunday & Monday, Pacific time USA). You guys … Continue reading Book free on Amazon for 48 hours! (Kindle)

1000 Castaways, Chapter 3: Balancing the Two Systems

(←Chapter 2    Chapter 4→) Balancing The Two Systems IN THE INTRODUCTION WE discussed how, in order to maximize their material wellbeing, a small group of people would want both to organize their private activities and their group activities efficiently. This is relatively easy with ten people but becomes exponentially harder as a group scales up … Continue reading 1000 Castaways, Chapter 3: Balancing the Two Systems

1000 Castaways, Chapter 2: System Two

(←Chapter 1       Chapter 3→) Chapter 2 System Two SO FAR WE HAVE SEEN how a system can emerge naturally that functions to help individuals better coordinate the use of real resources and thus increase the private production of society overall (Chapter 1). This increases the production of real goods and services for everyone. … Continue reading 1000 Castaways, Chapter 2: System Two

1000 Castaways, Chapter 1: System One

(←Introduction       Chapter 2→) Chapter 1 System One A  FLEET OF A THOUSAND COLONISTS are blown off course for weeks by a series of violent cyclones, eventually crashing onto the reefs of a large uncharted island. All of their ships and provisions are lost to sea. They wash ashore, all surviving the stormy … Continue reading 1000 Castaways, Chapter 1: System One

1000 CASTAWAYS: Fundamentals of Economics

UPDATE: It's Done! Live on Amazon here - 1000 CASTAWAYS: FUNDAMENTALS OF ECONOMICS is now available- Hardcover, Paperback, & Kindle at Amazon.com Hardcover, Paperback, & NOOK at Barnes & Noble   Angus and Robertson (Australia), Fishpond (New Zealand shipping),  Waterstones (UK), !NDIGO (Canada),  India Print Edition & Amazon India, South Africa Print Edition Ebook (Epub … Continue reading 1000 CASTAWAYS: Fundamentals of Economics

MMT & the Fourth Spark Plug: Descriptive vs. Prescriptive revisited

Imagine you are an experienced mechanic. One day your neighbour comes home with a newly purchased used car. It is running terribly – sputtering and running slowly with little power. You look under the hood. It is a four cylinder car in good condition, and you notice that one of the spark plug cables is … Continue reading MMT & the Fourth Spark Plug: Descriptive vs. Prescriptive revisited

The Myth of the Currency Hierarchy

(response to Coppola's "The Myth of Monetary Sovereignty" and related discussions) PREFACE A) Properly understanding the macroeconomy allows countries to operate at their full real-resource potential, whatever that might be. B) Understanding the macroeconomy does not change the real resource potential of countries. That is a more fundamental question concerning the improvement of the institutions … Continue reading The Myth of the Currency Hierarchy