Mr Shin, everybody expected to see inflation this year, but prices are hardly rising. What's happened? Economists are still struggling to figure out the full story on inflation. The simple stories that people tell are no longer adequate. These simple stories are domestic and short-term: If the economy is depressed, you have low inflation. If the economy is overheated, you have high inflation. We are realising that this cannot be the full story. Otherwise we should be seeing higher inflation by now.

There has been a century old debate of whether Keynesian or Austrian economics is best. Here is an infographic highlighting the main points of each

A product is no sooner created, than it, from that instant, affords a market for other products to the full extent of its own value and As each of us can only purchase the productions of others with his own productions – as the value we can buy is equal to the value we can produce, the more men can produce, the more they will purchase

Original presentation: www.youtube.com/watch?v=2YfgKOnYx5A David Friedman website: daviddfriedman.com/ Want to see more of this kind of thing...

Islamic culture is founded on a deep and pervasive respect for contract, and for contractual relationships as a means of solving diverse social problems. In add

Coke is made with corn syrup, not real sugar. Why is this? According to Professor Diana Thomas, part of the reason is because government policies artificiall...

This paper presents the first empirical evidence in the history of banking on the question of whether banks can create money out of nothing. The banking crisis has revived interest in this issue, but it had remained unsettled. Three hypotheses are recognised in the literature. According to the financial intermediation theory of banking, banks are merely intermediaries like other non-bank financial institutions, collecting deposits that are then lent out. According to the fractional reserve theory of banking, individual banks are mere financial intermediaries that cannot create money, but…

The idea of private coinage seems so strange today that it is worth examining carefully.