Imagine a new democracy imposes taxes on itself; the tax-credit is then spent, taxed back, thus provisioning public goods in the process. Not all spending is taxed back, thus the public has savings of tax-credits. Why would it make sense to pay more tax-credits to those holding tax-credits? If for any reason the public decided … Continue reading When are payments to holders of the tax-credit by the state ever a useful policy?
Before continuing with posts on this topic I want to note: I started these posts with a twitter comment by Nathan Tankus on replacing the dollar in international trade. That thread continues – that he foresees “a world of swap lines as alliance politics... Swap lines may seem like technocratic high politics now but it's … Continue reading The Two Families of Global Reserve Proposals & Swap Lines
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.
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)
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)
(←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
(←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
(←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
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
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