Monday, August 3, 2020

The Government Needs to Stop

In my most recent post, I directed the interested reader to a lecture in which I suggest a macroeconomic framework which could form the basis for better economic policy analysis in our present situation.

Here are some wise words from Benjamin Powell who applies the framework of which I speak:

Republicans and Democrats are debating what to include in yet another federal coronavirus relief bill. Meanwhile, the states are in various stages of “opened up” or “locked down,” with state and local politicians regulating the minutiae of our interactions right down to what constitutes a “meal” in order to determine which establishments may serve alcoholic beverages.

The politicians all need to stop. Just stop.

To read the rest click here.

Friday, July 24, 2020

Theory That Allows for Macroeconomic Analysis

Not a day goes by it seems without another call for government spending to aid our failing economy. Policy advice not rooted in sound economic theory is prone to error and when we error in economic policy, it causes real harm to people. Instead of flourishing, we get relative impoverishment.  I have already written on the weaknesses of Keynesian Macro. Robert Murphy has done yeoman work analyzing Modern Monetary Theory.

Here is a lecture I gave at the most recent Mises University. It provides a very broad-brush view of Austrian economics and how it helps us analyze macroeconomic issues and how it differs from Keynesian theory and Modern Monetary Theory: