Tag Archives: fractional reserve banking

RE: On The Empirical Relevance of Austrian Business Cycle Theory

My friend Grant McDermott, to whom I wrote why I think the empirical relevance of ABCT by Lester/Wolff may produce “mixed” results replied to me in this post. This is a quick one to elaborate my points. Firstly Grant says … Continue reading

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The Declining Relevance of Fractional Reserve Banks

Here is a fascinating article on Wired about the declining influence and relevance of fractional reserve commercial banks on the lives of individuals. It argues that banks will one day look more like Google, Facebook, or Apple. Interesting about this … Continue reading

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Technology and ABCT

Technology has a very interesting and highly complex effect on business cycles.  There is a lot that can be said about this topic but I just want to highlight a few important aspects of technology in its relation to ABCT and … Continue reading

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RE: On The Empirical Relevance of Austrian Business Cycle Theory

Chris: Further to your useful post, it goes without saying that Austrian methodology is wholly different from the empirical analysis employed in the Lester/Wolff study. Three points on this: Firstly, it is interesting that despite all the data shortcomings, the authors found … Continue reading

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The problem when fractional banks still work

Since the financial crisis in 2008/09 the Federal Reserve has printed trillions of dollars and purchased assets with them, mostly US government bonds and mortgage-backed securities.  This has caused the assets on the Fed’s balance sheet to swell by around … Continue reading

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How to Fix Greece in 7 steps

My article is posted over at Mises.co.za. I argue that Greece needs to: Abolish legal tender law Liquidate state assets for gold Back fractional bank deposits with the proceeds End all state services Repudiate the national debt Deregulate arms and private … Continue reading

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Why IP is Important

I’ve been getting ragged (in good-spirited jest I must add) by Gareth, who thinks I’m getting distracted by a fringe issue.  The thing is, I really don’t think ‘intellectual property’ is a fringe issue.  The reason IP issues are not fringe issues … Continue reading

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The Currency War for Dummies

My new article out on www.mises.co.za. The world is in a currency war. What is that? It’s when governments devalue their currencies in order to protect domestic industries against foreign competition. They believe that if their exchange rate is weaker … Continue reading

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Rothbard on trade and money

In light of my points regarding money creation, trade and exchange rates, here is one of the masters explaining the process. This excerpt is taken from The Mystery of Banking by Murray Rothbard, pages 120-123. Find the free PDF here … Continue reading

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Leon Louw Is Right…In A Sound Money World cont.

In response to my article “Leon Louw Is Right…In A Sound Money World“, Katy asks the following: I am fairly new to the field of rigorous economics, so please assist me if you may. You said, “So while we might … Continue reading

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