Ideas as sound as “the world is flat” pervade the economics profession. Take, for example, the notion that rising budget deficits force interest rates higher because government borrowing “crowds out” ...
A Tale of Two Dollars
Pundits are picking up on the possibility that a number of oil-exporting nations might drop the dollar as the payment mechanism for their oil. The plan would be to shift ...
Polls Are Polls and Beef Is Beef
The adversaries of President George W. Bush are having a hard time dealing with the fact that the economy continues to do well: a 3.9 percent jump in GDP for ...
Lost in Translation
The other guys are lost.
About a week ago the Wall Street Journal documented the growth of federal revenues since the Bush tax cuts were enacted in 2003. The numbers and ...
Flying in the Face of Supply-Side Success
The latest Congressional Budget Office statistical release on federal revenues provides a critical insight into the success of supply-side economic policies. When President Bush bullied the Congress to enact not ...
Landing Their Punches
Most Federal Reserve policy actions are transparent: The central bank buys or sells government securities daily to either increase or decrease the required reserves banks must hold at the Fed. ...
Looking for Taxes in All the Wrong Places
The recent congressional frenzy to increase taxes on the wealthy will backfire if such changes reduce economic output. If the Laffer curve works, as it always does, politicians will discover ...
Monetarism: Dead at Last?
The last vestiges of monetarism may have been put to rest on June 28, 2007.
Wayne Angell, retired member of the Federal Reserve Board, appearing that night on Larry Kudlow’s show ...
Can the Freedom Nexus Be Saved?
A staunch Republican recently told me that she would not support Mitt Romney for president because of his religious beliefs. Back in 1958 a similar fear existed relative to the ...
Guru Gone Bad
I have been in the investment business for about thirty-eight years, and in that time I’ve acquired an invaluable commodity: humility. Portfolio managers tend to lose this commodity when their ...