All posts for the month January, 2021

Pro-Market but not Pro-Business

For context, read this. Here’s my take: I see GameStop as a giant poker table. The only difference from a regular poker game is that an outsider periodically adds more money to the pot than players have. Everyone is aware that they are (or should) gambling and they have accepted the possible consequences. I have […]

Back to Basics, Pt. 2: It’s all about appearances

In the previous post, I discussed the gold standard’s phase-out. When we used commodity money, we developed a medium of account (MoA) valid for both gold and cash. This could only occur if one was fixed to the other. Silver was phased out in the nineteenth century, and gold was phased out in 1968, following […]

Aggregate Demand is not what you think

Scott Sumner has a new piece arguing that supply and aggregate supply are unrelated and misnamed: The AS/AD model that we teach our students is misnamed, as it has nothing to do with the supply and demand model used in microeconomics. To take one simple example, the vast majority of industry supply curves are almost […]

The Course of Empire: Banana on the Potomac

“Democracy is the most delicate flower in the world. It is tolerance, compromise, and dialogue that makes it alive.” What happened in the United States today is only a teaser of the vandalism that will be faced when the general principles that sustain liberal democracies are eroded over time. The Principle of the Rule of […]