The idea of “ velocity of circulation “ arose from the quantity theory of money, which links changes in the quantity of money to changes in the general level of prices. This is set out in the equation of exchange. The basic elements are money, velocity and total spending, or GDP. The following is the simplest of a number of ways it has been
Let us say that a carpenter wishes to cut fifty boards for the purpose of laying the floor of a house. He has marked his boards. He has set his saw. He begins at one end of the mark on the board. But he does not know that his seven-year old son has tampered with the saw and changed its set. The result is that every board he saws is cut slantwise
One of the most interesting aspects of the “Green New Deal” is that its progressive proponents hardly mention taxes at all—even as some Republican economists continue to champion a carbon tax. Faced with the political defeat of the Waxman-Markey “cap and trade” bill , as well as the failed carbon tax initiatives in Washington State , it
Mr. Quiggin’s recent book, Economics in Two Lessons , is the latest intellectual salvo fired by a member of the mainstream economics establishment towards the legendary unabashed defenders of capitalism like Ludwig von Mises, 1974 Nobel Laureate in Economics F.A. Hayek, and of course, Henry Hazlitt himself, who von Mises once referred to as “our
Confucian Capitalism: Shibusawa Eiichi, Business Ethics, and Economic Development in Meiji Japan by John H. Sagers Cham, Switzerland: Palgrave Macmillan, 2018, xvi + 245 pp. Jason Morgan (jmorgan@reitaku-u.ac.jp) is an associate professor at Reitaku University in Chiba, Japan. Quarterly Journal of Austrian Economics 22, no. 1 (Spring 2019), for
Marxian doctrine doesn’t deny the possibility of absolute truth, but it maintains that absolute truth can be attained only in the classless society. Or in the proletarian class society. Lenin’s main book , or at least his most voluminous book (now available in the Collected Works of Lenin ), led some people to call him a philosopher. Most of
ABSTRACT: Peter H. Lindert and Jeffrey G. Williamson, in their book Unequal Gains: American Growth and Inequality since 1700 (Princeton University Press, 2016), explore the reasons for the decline in the share of income captured by top earners in industrialized nations. Embedded in their take on the “Greatest Leveling” is a push for progressive
Quarterly Journal of Austrian Economics 22, no. 2 (Summer 2019) full issue. ABSTRACT: This paper examines John Maynard Keynes’s ethical theory and how it relates to his politico-economic thought. Keynes’s ethical theory represents an attack on all general rules. Since capitalism is a rule-based social system, Keynes’s ethical theory is
As a co-host (along with Tom Woods) of the podcast Contra Krugman , I spend a lot of my time contrasting the typical Keynesian approach with that of the Austro-libertarian. And as fun as that is, it’s even more interesting to show how Austrians differ from another market-friendly paradigm, namely the “Law & Economics” paradigm associated with the
[This talk was delivered on June 1, 2007, at the Future of Freedom Foundation ‘s Conference on “Restoring the Republic: Foreign Affairs and Civil Liberties.”] There are two clear and present dangers to liberty in America. One is known as the Left, and the other is known as the Right. They are dangerous because they seek to use government to mold
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.