Ed Dolan talks to us about modern monetary theory. Can it save us?

Summary: Next in a series about economics and the global government debt crisis, Ed Dolan talks to us about modern monetary theory. How does it differ from mainstream economics? And he has a few words to say about the Austrian school.  This was lifted from the comments of yesterday's post. Other posts in this series: … Continue reading Ed Dolan talks to us about modern monetary theory. Can it save us?

Economic theory as a guiding light for government action in this crisis

Economic theory as a guiding light for government action in this crisis. But which theory? The dominant Keynesian economic theory, or that of the Austrian School?  (see the links at the end for background information about each). Here is an excerpt from the Drobny Global Monitor of 5 March 2009, by Andres Drobny (see his bio … Continue reading Economic theory as a guiding light for government action in this crisis

“A depression is for capitalism like a good, cold douche.”

Most of the comments on the FM site by folks discussing Austrian economics showlittle understanding of Austrian economics.  Here is an anecdote by a famous economist who met one of the great founders of Austrian theory.  A telling anecdote, revealing much about the difference between the Keynesian and Austrian schools of economics -- and why Keynesians … Continue reading “A depression is for capitalism like a good, cold douche.”

Geopolitical implications of the current economic downturn

Summary:  How will this recession end?  My guess:  with re-balancing of the global economy and a decline of the US dollar so that the our goods and services are again competitive.  No more trade deficit, we can pay our debts, and there will be no serious outflow of jobs. There are several schools of economic thinking about … Continue reading Geopolitical implications of the current economic downturn