Category Archives: Economics

Pop Internationalism (Paul Krugman 1996)

In Pop Internationalism, Krugman defends international trade. Several ideas are put forward. The shrinking in manufacturing sectors (and its related jobs) has domestic causes, in particular the growing share of the sectors of services in the GDP. International trade with … Continue reading

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The Great Depression in Britain (1873-1896) : the Myth that Deflation Lowers Economic Growth

The problems of the Great Depression (1873-1896) have been falsely to secular declines in prices. To begin, it was not clear there were any troubles during this period and even if it was the case, they were of trivial importance. … Continue reading

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An account of the good deflation in the American economy of 1870s-1890s

The american economy in the 1873-1896 is usually portrayed as the Great Depression of 1873-1896 (Wikipedia). But to say this is a myth is not very far from the truth (Higgs, 1971; Catalan, 2011). One feature of this period is … Continue reading

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The 1920-1921 Depression and Recovery

Let’s recall the story. Some austrian economists (Woods, 2009; Powell, 2009; Murphy, 2009) claimed that Warren Harding cut the taxes, and by this has promoted the economic recovery. But Kuehn (2010) challenges this view. Kuehn (2012) believes that it was … Continue reading

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Historical evidence of anti-Gresham’s Law

The book Good Money (Selgin, 2008) already showed us that the idea of Gresham’s law as a natural feature of free market is just plain wrong. Historical evidence of anti-Gresham’s law is so rare that it is even more important … Continue reading

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The free banking in Belgium during the 19th century

Until now, there was no account of any episode of free banking in Belgium. I was only aware of a brief narrative in chapter 2 (by Schuler, 1992) of The Experience of Free Banking (edited by Dowd). Recently, Mardini & … Continue reading

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Other empirical studies on the ABCT

My earlier post on the empirical evidence of the ABCT was already too long. In this article, I will only add the discussion on the studies not covered earlier. I do not want to post another article each time a … Continue reading

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A growth in inequality together with growth in financial market activities : Probably not a mere coincidence

Very recently, Thomas Piketty’s new book, Capital in the Twenty–First Century, has been widely commented and has elicited a lot of reactions. Particularly in the United States. The theory (of inequality due to capital accumulation) advanced by the author is that the … Continue reading

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The problem of Money as Debt

Paul Grignon, in his video Money as Debt (see his channel), claimed that the lending of money by commercial banks by definition results in indefinite growth of private debt. People cannot repay the interest rates charged by the banks, either low … Continue reading

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The Role of the Credit Rating Agencies in the U.S. Subprime Crisis : Too Much Competition ?

A known fact is that the Big Three, namely, Moody’s, Fitch Ratings, Standard & Poor’s, have provided inaccurate ratings that were obviously too generous. These CRAs (not to be confounded with Community Reinvestment Act), contamined by conflicts of interest, had … Continue reading

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