Economic Policy

In a previous post titled, “Why Doe

No macroeconomics or monetary theory course is complete without introduction of the Equation of Exchange, or MV = PQ. However, this equation explains nothing, praxeologically speaking. Instead, it clouds our understanding of how money fits into our economy. 

As we see from Jamaica‘s experience, attempts by the government to be entrepreneurial misallocate resources, waste money, and achieve poor results.

Like Santa, who gives free gifts to our children, people think of the state as providing services “for free.” However, the state cannot provide anything without first confiscating wealth from others—like the Grinch, who first stole all the presents in Whoville.

President-elect Donald Trump has declared that he will raise tariffs his first day in office. Our economy, however, does not need government-created roadblocks to trade. Instead, we need free exchange and sound money.

Thanks to the Fed's balance sheet and the Fed's policy on reverse repurchase agreements, it's hard to tell whether the Fed is being hawkish or dovish. 

"Hurry up and wait" is often the reality of medical care. We shouldn't be surprised to know that long lines and government intervention go together.

President-elect Trump has promised changes in economic policies. How well they work and how they will affect us remains to be seen. Here is a look at proposals that have promise—and proposals that are likely to cause harm.

Most economic analysts predict that the US is about to enter into a cyclical recession. Even Austrian School economists (like me) agree.