Search Results for ""regime uncertainty""

The Continuing Puzzle of the Hyperinflation that Hasn’t Occurred



Since late December 2008, the bank prime lending rate—the interest rate banks charge their best corporate customers—has remained steady at 3.25 percent. Meanwhile, during the same period, the excess reserves that commercial banks hold at the Fed have increased from $2 billion in August 2008 to $1,513 billion in May 2011. Ordinarily, one would have expected...
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Bloomberg: Put Higgs’s Name on That Nobel



In a Bloomberg report today, “Economic Recovery Is Languishing as Americans Await Signal of Better Times,” Peter Coy casts about for explanations for why the economy is not in recovery, and ends with this offer: A Nobel prize goes to whoever can end this routine and get America growing again. OK, Mr. Coy, send...
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Robert Higgs on Why Government Is Prolonging the Economic Crisis



In a new article for the Gannett newspapers, “Is this any way to run a government?”, Chuck Raasch interviews Robert Higgs, Senior Fellow at the Independent Institute and author of the book, Depression, War, and Cold War. With Congress debating a possible shutdown of the federal government, Dr. Higgs discusses why: “The government can...
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Economic Growth: Incentives Matter



President Obama spoke to the U.S. Chamber of Commerce today (February 7), to try to encourage the CEOs of American businesses to do their share to reinvigorate the economy by investing, hiring, and matching what his administration has done through its various stimulus programs. In part, the president said, “As we work with you...
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Notes on Bernanke’s Apologia for QE2



On November 4, an op-ed article written by Ben Bernanke, “What the Fed Did and Why: Supporting the Recovery and Sustaining Price Stability,” was published in the Washington Post. In this article, Bernanke presents an apologia for the Fed’s decision to undertake QE2, the purchase of $600 billion of longer-term U.S. government bonds during...
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This Week in The Lighthouse: Government’s Cost | U.S. Economy | Fourth Amendment | Venezuelan Elections



This week’s Lighthouse discusses the Independent Institute’s new Government Cost Calculator at www.MyGovCost.org, Robert Higgs on regime uncertainty, Joseph R. Stromberg on the decline of the Fourth Amendment, and Alvaro Vargas Llosa on next week’s elections in Venezuela. Here are links to the individual items: 1. What Is Washington’s Spending Costing You? 2. It’s...
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The Great Divergence: Private Investment and Government Power in the Present Crisis



Private saving and investment are the heart and soul of the dynamic market process. Together they provide and allocate the resources used to augment the economy’s productive capacity, generate sustained long-run economic growth, and thereby make possible a rising level of living. Economic crises interrupt this process by discouraging investors and causing them to...
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Congressional Democrats’ Adviser Joins Call for Regime Certainty



Joining the growing tide of those calling for an end to federal regime uncertainty, Moody’s economist Mark Zandi, a frequent adviser to Congressional Democrats, on CBS’s “Face the Nation” on the importance of quickly extending the tax cuts scheduled to expire at year end: I wouldn’t raise anyone’s taxes in 2011. I mean, I...
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New York Times Finally Gets It: “Let Housing Prices Fall!”



The New York Times finally gets what we on the “free market “fringe” have said from the beginning (under Bush and now under Obama): Housing subsidies, easy credit, bribing banks to refinance those “under water,” and–even worse–extending “first-time homeowner” programs to the nth degree just doesn’t work! Artificial stimulation of housing caused this bubble....
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Consumption Spending Is 70 Percent of GDP—So What?



It must be a condition of employment that a journalist who writes about the current recession include in his article the statement, “consumption makes up more than two-thirds of the economy” or “consumption spending accounts for 70 percent of GDP.” This seemingly simple, factual statement, however, is nearly always intended to carry some explanatory...
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