This article originally appeared at cobdencentre.org. Via Thrifty families accused of prolonging the recession – Times Online, yet more crass Keynesianism: Anxious families are repaying debts instead of spending in the shops, amid concern over the uncertain economic outlook. The share of income saved in banks and building societies has […]
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Presentations of capital-based macroeconomics
Though not for the faint-hearted, this first-class Powerpoint presentation of capital-based macroeconomics — based on Roger Garrison’s “Time and Money” — provides helpful animations explaining how the structure of production changes in response to saving and investment. It shows how malinvestment and overconsumption arise. The original home of these presentations […]
Read MoreThe End of Mainstream Economics: An Interview with Gunnar Tómasson
From an interview with ex-IMF economist Gunnar Tómasson: Does this mean that generations of students have been brought up on nonsense ideology? For this is ideology, of course. Gunnar: Yes, nonsensical ideology. The root of the problem goes back to a point made in the mid-19th century by John Stuart […]
Read MoreIs the Economy a Perpetual Motion Machine? – William L. Anderson
Are you an Austrian?
Economics is not a natural science. Unlike physics, you cannot reliably say things like: For a fixed amount of an ideal gas kept at a fixed temperature, P [pressure] and V [volume] are inversely proportional. (That is, halve the volume and the pressure will double.) Unfortunately, many economists and other […]
Read MoreInflation as a nation’s salvation?
From mises.org, “hilarious and horrific propaganda” demonstrating that dumbing-down is not as new as some like to think: A better explanation is available here.
Read MoreSpending on high street plunges
The Guardian reports: The prospects of a bleak Christmas on the high street are rising sharply as a survey out today shows a big fall in consumer spending in spite of lower interest rates and petrol prices. Downing Street’s hopes for a consumer-led recovery fired by a cut in VAT […]
Read MoreThe shifting orthodoxy of economics: Friedman on Keynes
I found “John Maynard Keynes” by Milton Friedman. It’s reasonably short but here are two interesting sections: Quoting Callaghan: Experience led to disillusionment with initial Keynesianism on the part not only of professional economists but also of policymakers. The most dramatic evidence came from James Callaghan, when he was the […]
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