The gold standard is silly. No one should be in favor of going back to it. Here’s why:
Category: Myth Busting
(Popular Myths of the Economy and Markets….BUSTED!
Rand Paul Has No Idea How the Fed Works
Sorry for the blunt title, but I couldn’t think of anything more appropriate….
What If Everyone Indexed?
I see this question more and more as indexing grows in popularity. People generally think that more indexing will make the markets function less efficiently . I don’t think this [ … ]
Tobin’s Q Is Not a Valid Market Timing Metric
Over the course of the last seven years many market pundits have relied on Tobin’s Q to argue that the stock market is overvalued and I’ve argued that the indicator [ … ]
The MV=Py Myth
I’m pulling this one out of the AMA section because it’s a common question I see. Reader Oshe asked about the Equation of Exchange otherwise known as MV=Py, where M [ … ]
Myths About the USA’s Fiscal Union
The FT ran a piece about the fiscal union in the USA and why this system couldn’t be replicated in Europe to help resolve the Euro crisis. I wanted to [ … ]
Where Does Money Come From?
“The process by which money is created is so simple the mind is repelled.” – JK Galbraith There’s a reason why myth # 1 in my “biggest myths in economics” is [ … ]
The Horrid “Cash on the Sidelines” Myth is Still Haunting us!
I turned on some financial TV last week only to find a well known pundit talking about all that “cash on the sidelines”. It’s been a long time since I [ … ]
Why The Efficient Market Hypothesis is Useless
I noticed Noah Smith and John Authers on Twitter discussing how great the Efficient Market Hypothesis is because it explains why indexing works. I responded saying that the EMH really has [ … ]