Brad Delong rightly slams Austrian economist Robert Murphy this morning for a bet he made in 2009 regarding inflation. Murphy stated that headline inflation would hit 10% by January 2013. Well, here we are with 24 hours to go and the latest monthly CPI reading is 1.8%. I don’t want to just pile on Murphy with personal attacks. Instead, I think [...]
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The Biggest Problem with Modern Macro…
There’s been a lot of ink spilled in recent weeks over the problems (or lack thereof) in modern macroeconomics (see here and here). I’ve expressed my opinion that the state of modern macro is moving in the right direction because there’s serious debate about the problems with the mainstream approaches which has resulted in the rise of competing ideas. But [...]
Where Does “Cash” Come From?
There’s this obsession with physical money in life. I don’t know where it comes from or why it persists, but it does. I guess maybe it’s the sense of security of being able to feel something and hold it in your hands. To many people a gold bar is pure money because you can pick it up, you can feel [...]
Does the Money Supply Increase When the Fed Buys Bonds?
I keep getting this question over and over again so I think it’s time I address it more directly. First, let’s begin by understanding what I mean when I say “money”. When I refer to “money” I am referring to the most widely accepted media of exchange – primarily currency and bank deposits. It’s true that almost anything in the [...]
Outperforming the S&P 500 is not Easy. Don’t Be Fooled Otherwise.
I was browsing MarketWatch and noticed this article titled “Beating the market is easy”. It’s a catchy title and I like to beat the market so I clicked on the link. The article outlines 10 ways you can beat the market. The market, in this case is the S&P 500. The author outlines a few different strategies: Implementing leverage [...]
Todd Harrison’s 10 Trading Commandments
It seems like everyone’s got a list for “investment rules”, but this one’s worth taking a look over. Todd Harrison of Minyanville is a very savvy investor and knowledgeable guy who’s been around and been through more than most of the rest of us.
Banking in the Abstract – The “Chicago Plan”
JKH has written the definitive assessment of the IMF’s “Chicago Plan”. This paper is incredibly thorough, insightful and detailed. It’s probably not appropriate for most novices, but I highly recommend it as he reinforces many of the most important lessons from Monetary Realism. Read the full paper at the Monetary Realism website. The IMF recently published a working paper [...]
Understanding Inside Money and Outside Money
One of the keys to understanding Monetary Realism and the modern monetary system (see full explanation here) is understanding the various forms of money that exist within the system. For this piece I am going to focus on the system as it’s designed in the USA to describe the various forms of money and their relationship to one another. Money, [...]
Everything You Need to Know About Finance and Investing in Under an Hour
We all want to be financially stable and enjoy a well-funded retirement, and we don’t want to throw out our hard earned money on poor investments. But most of us don’t know the first thing about finance and investing. Acclaimed value investor William Ackman teaches you what it takes to finance and grow a successful business and how to make sound investments that will grant you to a cash-comfy retirement.
Orcam Educational Resources Page
Just in case you’ve missed this….I’ve added a big resources page at the Orcam website. It’s much better organized than anything here at Pragcap. This blog is obviously just a running dialogue so a lot of good content gets lost over time if I don’t bookmark it. Plus, this site is kind of a disorganized mess. The list at Orcam [...]
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