Articles related to austrian
Gerard Jackson
The "wealth effect" an Austrian view
It is being said that if the fed could just get the ‘wealth effect’ into motion the US economy would fully recover from the recession. But the ‘wealth effect’ is a phantom, the sort of economic fallacy that only a Keynesian could conjure up.  Those who support this fiction argue that a stock market’s performance is driven by a net inflow of funds which in turn is driven by economic growth. They go further by saying that growth in turn is driven by investment, innovation and productivity, all of
Saturday, February 20, 2021
George F. Smith - Barbarous Relic
Gary North on central banking, gold, federal debt, and Keynesianism 
I have never met Gary North and probably never will.Yet, through his writings he has had a far-reaching influence on my thinking, especially with regard to government and economics.He runs a membership website, $14.95 a month you get access to everything on the site, including four daily articles that he writes six days a week and posts while most people are still asleep.Members can ask questions in the forums to which he and other members will post replies. North wrote what
Wednesday, February 17, 2021
Frank Shostak
Why We Now Measure Gold in Dollars — and Not the Other Way Around
Prior to 1933, the name "dollar" was used to refer to a unit of gold that had a weight of 23.22 grains. Since there are 480 grains in one ounce, this means that the name dollar also stood for 0.048 ounce of gold. This in turn, means that one ounce of gold referred to $20.67.Observe that $20.67 is not the price of one ounce of gold in terms of dollars as popular thinking has it, for there is no such entity as a dollar. Dollar is just a name for 0.048 ounce of gold. On this Rothbard wrote,No one p
Wednesday, February 10, 2021
Alasdair Macleod - Finance and Eco.
The origin of cycles
It was Karl Marx who was among the first believers that cyclical behaviour was endemic to free markets.He lived through a time when there was a regular cycle of boom and bust, with phases of economic expansion followed by contraction. Workers were employed and then unemployed, and the only way this could be stopped, in Marxian economics, was for the workers to acquire the means of production, or more correctly, the state to do so on their behalf.Other economists, such as Jevons and Wicksell, rec
Sunday, January 24, 2021
George F. Smith - Barbarous Relic
  Fielding my grandson’s questions about gold and banking
My grandson had quite a day at school.He had learned that the economy had been suffering from things called Panics, capital P, during the 19th century and had another big one in the early 20th century.He had been told that responsible, public-spirited men like J. P. Morgan had organized a central bank to prevent those Panics.He and other bankers finally got the government to go along with their idea and pass it into law in late 1913.And wouldn’t you know it — we’ve had no more Panics since then.
Thursday, December 24, 2020
Jeff Clark - GoldSilver
How and Where to Buy Silver Coins
Looking to buy silver coins? You’ve come to the right place!This handy guide outlines everything you need to know, including the advantages of owning silver coins, the different coins available, the best coins to buy for investment, and where to buy them. We also include our “Investor’s Edge” with each section…Advantages of Silver CoinsMany investors don’t realize that silver coins offer benefits far beyond price appreciation.Consider the advantages you gain by buying silver coins. Similar to go
Thursday, December 24, 2020
Frank Shostak
  Why Fractional-Reserve Banking Would Be Limited in an Unhampered Market 
The so-called multiplier arises as a result of the fact that banks are legally permitted to use money that is placed in demand deposits. Banks treat this type of money as if it was loaned to them, thus loaning it out while simultaneously allowing depositors to spend that money.RELATED: "Austrians, Fractional Reserves, and the Money Multiplier" by Robert BatemarcoFor example, if John places $100 in demand deposit at Bank One he doesn't relinquish his claim over the deposited $100. He has unlimite
Tuesday, December 22, 2020
Eugen Von Böhm-Bawerk -
Our Passive Trade Balance
Editor's Note: Published in January 1914 in Neue Frei Presse,"Our Passive Trade Balance" (“Unsere passive Handelsbilanz”) would prove to be Eugen von Böhm-Bawerk's last publication before his death. Ludwig von Mises mentions the article in an essay written after Böhm-Bawerk's death, but to our knowledge, this is the first time the essay has appeared in English. Nathan Keeble located a scan of the article posted by the Austrian National Archives. Translation by Kai Weiss.]As is well known, the t
Saturday, December 19, 2020
Frank Shostak
Inflation Is Not About Price Increases
There is almost complete unanimity among economists and various commentators that inflation is about general increases in the prices of goods and services. From this it is established that anything that contributes to price increases sets in motion inflation.A fall in unemployment or a rise in economic activity is seen as a potential inflationary trigger. Some other triggers, such as rises in commodity prices or workers’ wages, are also regarded as potential threats.If inflation is just a genera
Monday, November 16, 2020
Frank Shostak
  Why It's Important to Define Money Correctly
Most economists hold that, since the early 1980s, correlations between various definitions of money and national income have broken down. The reason for this breakdown, it is held, is that financial deregulation has made the demand for money unstable. As a result it is held the usefulness of money as a predictor of economic events has significantly diminished.To fix the instability of the demand for money, economists have introduced a gauge of the money supply known as the Divisia monetary indic
Sunday, November 15, 2020
Robert P. Murphy
The Gold Standard Did not Cause the Great Depression
Quarterly Journal of Austrian Economics 19, no. 1 (Spring 2016): 101–111[The Midas Paradox: Financial Markets, Government Policy Shocks, and the Great Depression by Scott Sumner]The Midas Paradox is an impressive piece of scholarship, representing the magnum opus of economist Scott Sumner. What makes the book so unique is Sumner’s use of real-time financial data and press accounts in order to explain not just broad issues—such as, “What caused the Great Depression?”—but to offer commentary on th
Thursday, November 12, 2020
Frank Shostak
There Are Two Types of Credit — One of Them Leads to Booms and Busts
In the slump of a cycle, businesses that were thriving begin to experience difficulties or go under. They do so not because of firm-specific entrepreneurial errors but rather in tandem with whole sectors of the economy. People who were wealthy yesterday have become poor today. Factories that were busy yesterday are shut down today, and workers are out of jobs.Businessmen themselves are confused as to why. They cannot make sense of why certain business practices that were profitable yesterday are
Sunday, November 1, 2020
Nathan Lewis - New World Economics
God, Gold and Guns
We’ve been looking into One Nation Under Gold (2017), by James Ledbetter. October 2, 2017: One Nation Under Gold (2017), by James Ledbetter October 14, 2017: One Nation Under Gold #2: The Silliness of the Bretton Woods Years Now, we will follow Ledbetter’s account of the end of Bretton Woods in 1971, up to the present. The account of the 1971 devaluation was, following the pattern of this book, long on details but short on insight. It seemed to people at the time that they “had no choice,” that
Saturday, October 24, 2020
Nathan Lewis - New World Economics
Blame Gold
We have been talking about The Midas Paradox (2015), by Scott Sumner. July 23, 2017: The Midas Paradox (2015), by Scott Sumner. As you probably guessed from the three-word title, the book can be summarized in two words, which are: “blame gold.” This, as we have seen, is actually a relatively new notion, even if it enjoys some popularity today. The general consensus, which later (after 1950) became the Keynesian consensus, did not blame gold, or indeed, monetary policy in general, for the Great D
Friday, July 3, 2020
Steve Saville - Speculative Investor
Why bad economic theories remain popular 
Ludwig von Mises and Friedrich Hayek, the most prominent “Austrian” economists of the time, anticipated the 1929 stock market crash and correctly predicted the dire consequences of government attempts to artificially stimulate economic growth in the aftermath of the crash. John Maynard Keynes, on the other hand, was totally blindsided by the stock market crash and the economic disaster of the early 1930s. And yet, Keynes’s theories gained enormous popularity during the 1930s whereas the work of
Tuesday, April 28, 2020
Alasdair Macleod - Finance and Eco.
The egregious errors of static statistics
The measure of a man's real character is what he would do if he knew he would never be found out. Lord Macaulay wrote this nearly two hundred years ago. His aphorism is particularly apposite of modern politicians, and also of the modern state itself, which is meant to be selfless in the interest of the common good. We can be certain that when a person moves from outside to inside the machinery of the state, he or she changes from representing the people to representing the state. Presumably ther
Friday, March 16, 2018
Chris Powell - GATA
Hungary's central bank to repatriate its 3 tonnes of gold from London
* * * From Hungary Today, Budapest Tuesday, March 6, 2018 The leadership of the Hungarian National Bank has decided to bring back home Hungary's gold reserves. Up to now, 100,000 ounces (3 tonnes) of the precious metal were stored in London, which is in total worth some 33 billion forint ($130 million) at current gold prices. The decision seems to be in line with international trends as storage of gold reserves out of th
Tuesday, March 13, 2018
Przemyslaw Radomski CFA - SunshineProfits
Are We in Late Cycle Implications for Gold
In the previous edition of the Market Overview, we explored the fascinating history of bull and bear cycles in both the U.S. dollar and gold. Since then, the idea of cyclicity doesn’t lead me to drop off, disrupting my sleep cycles. Let’s then dig into the topic. We start with the business cycles, as in the recent Gold News Monitor we wrote that “we are in the late stages of the economic cycle – as the cycle matures, volatility increases and investors start to buy more gold as a hedge.” Why do w
Saturday, March 10, 2018
Andy Hoffman - Miles Franklin
Is Gold Worth More Or Less Than Its $1900 High In 2011
One of the challenges with investing in precious metals is that there is so much distortion in the market that figuring out a true fair value is not always the easiest thing to do. Yet there are clues investors can look at that indicate that when the price starts to move, it won’t be by a small amount. Back in 2011 I was still working as an equity options trader on the New York Stock Exchange, and was about two years into my studies of the precious metals market. Following the collapse of the su
Friday, March 9, 2018
Nathan Lewis - New World Economics
Where’s The Magic Formula
(This item originally appeared at on March 3, 2018.) For some time, I’ve argued that a lot of economic policymaking boils down to the Magic Formula, which is: Low Taxes and Stable Money. There is more to it than this, of course; but if you don’t get the big stuff right, the little stuff won’t matter. So, get the big stuff right, first. Conversely, when a country runs into trouble, you can usual
Saturday, March 3, 2018