Roundaboutness is Not a Mysterious Concept: A Financial Application to Capital Theory Nicolas Cachanosky, Metropolitan State University of Denver Peter Lewin, University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics March 16, 2014 Abstract: We apply the EVA® terminology to the concepts of roundaboutness
by David Stockman From David Stockman’s Contra Corner . Remarks to the Committee For The Republic, Washington DC, February 2014 (Part 4 in a 6-Part Series) Go to Part 1. The Great Depression thus did not represent the failure of capitalism or some inherent suicidal tendency of the free market to plunge into cyclical depression—absent the
Mitt Romney said during the 2012 presidential campaign: “I’m not concerned about the very poor. We have a safety net there. If it needs repair, I’ll fix it.” Can there really be any doubt that it needs fixing? Don’t expect the government to provide any reliable numbers. The biggest federal poverty program, the Earned Income Tax Credit (EITC) pays
Janet Yellen celebrated her confirmation as Fed Chairman on January 6 by immediately issuing a carefully hedged prediction: “I am hopeful that the first digit [ of GDP growth] could be 3 rather than 2 and [that] inflation will move back toward our longer-run goal of 2%.” Let’s hope she has better luck with her predictions than the retiring Ben
During Senate confirmation hearings on the nomination of new Fed chairman Janet Yellen, Mike Johanns ( R-Neb) expressed the opinion that Fed stimulus is putting the economy on an unsustainable “sugar high.” Pat Toomey (R-PA) described it as a monetary “morphine drip.” The Fed insists that it can quickly reverse all the new money it has conjured
People often ask today: if the Fed has created so much new money, why hasn’t it produced more inflation? When the Fed creates masses of new money, it initially flows to Wall Street, which profits from it in a variety of imaginative ways, but from there its path is unpredictable. The Fed inserted into the TARP bill in 2008 the authority to pay
As Ryan McMaken noted on June 5 , the European Central Bank has instituted negative interest rates for member banks. This could soon spread to the US and also to consumer accounts. If so, you would find money taken out of your bank account each quarter unless you spend it. Some observers think that in the US at least it will start with higher
Shawn Ritenour writes: Three days ago I had the honor of delivering the Founders Lecture in Pittsburgh sponsored by the Center for Vision and Values. My topic was “Economic Freedom and the Early American Republic.” I gave the audience a whirlwind tour of the variety of economic ideas that were current in the minds of the founders. I highlighted
Foreign individuals and businesses long ago cut back on their purchases of U.S. bonds. Their place was taken by foreign central banks. The central banks simply created money in their own currency and used it to buy our bonds. The Federal Reserve always knew that we couldn’t rely on foreign central banks to buy our bonds forever. This may be the
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.