Investing

Building a bridge is costly: It takes labor and machinery and raw materials that have alternative uses. Does it follow that building it is a waste? No. Waste occurs when…

(As the Fed is once again planning to unwind its balance sheet, the size of which doubled as a result of its COVID-19-crisis Quantitative Easing, we think it worthwhile to…

Twice now,  on this forum back in 2013, and on Twitter more recently (see here and here), I’ve taken Yale economics professor Gary Gorton’s publications to task for misrepresenting the historical…

  The post The Contagion Concoction: The Truth About Runs and the Great Financial Crisis (CMFA Working Paper No. 006) appeared first on Alt-M.

The Fed’s long-awaited report on central bank digital currencies is finally out. Although the report makes it clear that the Fed has no immediate plans to issue a digital currency,…

Ever since Federal Reserve Chairman Jerome Powell described cyclical or COVID-related elements of inflation as “transitory” (an ambiguous phrase now retired), critics repeatedly seized on year-to-year changes in price indexes…

Starting with the April 2021 release, virtually every monthly Consumer Price Index (CPI) report has indicated some form of abnormally high inflation. For instance, the April CPI rose 4.2 percent…

I’ve often drawn attention here to the virtues of the Canadian banking system, especially as it was between the passage of Canada’s first Bank Act in 1871 and the establishment…

“The fateful errors of popular monetary doctrines which have led astray the monetary policies of almost all governments would hardly have come into existence if many economists had not themselves…

Many economists acknowledge that ordinary private goods and services need to “pass the market test”—generate revenue in excess of expenses—to show that consumers’ benefits (revealed by a willingness to pay)…