“Can you explain what actually is the reason/purpose of interest in our modern day monetary system?”
Category: Macro Perspectives
Who Determines Interest Rates?
I get this question a ton – who determines interest rates in the economy, the markets or the Fed? The answer is actually neither. The state of the economy determines [ … ]
What Causes Recessions?
I am still working my way through the Q&A from the other week and I really wanted to highlight this question because it’s a good one: “Noah Smith is always [ … ]
I Really Want to Crush the Efficient Market Hypothesis….
This is my OCD speaking again and I’m not gonna beat around the bush here. I have a big problem that I need to solve in the coming decade. You [ … ]
A Cheat Sheet for Understanding the Different Schools of Economics
Ever wanted a basic overview of the various schools of economics? Of course you didn’t, but I will give it to you anyhow.
Macro Wars – the Rise of the True “Salt Water” School
The rise of the Post-Keynesians and the true “salt water” school.
Why the Endogenous Money Debate Matters
Endogenous money is important so let’s try this again….
Would Keynes Have Called this a “Liquidity Trap”?
“after the rate of interest has fallen to a certain level, liquidity-preference may become virtually absolute in the sense that almost everyone prefers cash to holding a debt which yields so low a rate of interest. In this event the monetary authority would have lost effective control over the rate of interest.”
“Keynesian” Myths and Misunderstandings
As an entrepreneur and capitalist, I read this critique of “Keynesianism” by John Mauldin with great interest. Unfortunately, I fear it is extremely misleading….