Archive for the ‘news’ Category
After spending some time at another location, we’ve decided to come back to WordPress. Subscribe to the feed for regular updates, or email us if you would like to contribute. Here’s to some great conversations!
I’ve been looking for an excuse to post this picure of Hayek for weeks now. Hayek’s birthday (May 8th) will do.
The full story of how Hayek had “inflation by the balls” here.
Here is Cato’s Dan Mitchell explaining the problems with Keynesian solutions to recessions.
Hat-tip to Krazy Kaju for his summary:
The idea that government fiscal stimulus can increase actual aggregate demand is false. That money needs to either be borrowed, taxed, or printed. If it’s borrowed, that’s less money that the private economy may borrow. If it is taxed, that is less money that the private economy has. If it is printed, that is less value per dollar that the private economy has.
Here is the 9 page document released by the G20 today, outlining its plans for “solving” the global economic crisis.
The agreements we have reached today, to treble resources available to the IMF to $750 billion, to support a new SDR allocation of $250 billion, to support at least $100 billion of additional lending by the MDBs, to ensure $250 billion of support for trade finance, and to use the additional resources from agreed IMF gold sales for concessional finance for the poorest countries, constitute an additional $1.1 trillion programme of support to restore credit, growth and jobs in the world economy.
We are undertaking an unprecedented and concerted fiscal expansion, which will save or create millions of jobs which would otherwise have been destroyed, and that will, by the end of next year, amount to $5 trillion, raise output by 4 per cent, and accelerate the transition to a green economy.
Our central banks have also taken exceptional action. Interest rates have been cut aggressively in most countries, and our central banks have pledged to maintain expansionary policies for as long as needed and to use the full range of monetary policy instruments, including unconventional instruments, consistent with price stability.
From about 5:00:
“You know, all the guys watching this program will know people who are in debt. You know, they have got five credit cards. They have overspent on them. And what would be the advice that you would give to somebody in that situation? You would say, curtail your spending. You know, try and live within your means. Keep your budget down.
But, when it is a government, the advice is, no! Spend more! There’s this brilliant magic wand called Keynes. And it means that, the more you spend, the more you borrow, the better you’re going to actually make the economy.
Well, you have to be either a banker or a politician to think that way.”
I’ve discovered a fantastic new website called KhanAcademy.org. It’s an awesome organisation that aims to provide “a high quality education to anyone, anywhere”. It’s has video lessons on everything you want to know about maths and physics, as well as a mean finance and banking section. Sadly there’s no pure economics section…yet.
Here are the Khan Academy’s concerns about the Geithner plan (Hat-tip to Karl Deeter)
We have upgraded our message board to Forumotion, and now have a dazzling array of features to offer new members. Over the next few days we will be migrating everybody to our new location, so if you’d like to get involved as we rebuild from the ground up, sign up here:
Don’t miss out, this is going to be big!