The Regression Theorem: Misconceptions
In two previous posts, I described the regression theorem and discussed its practical applications. In this post, I will discuss some misconceptions. Misconception 1. The regression theorem only...
View ArticleUnintended Monetary Policy Effects – Tale II: ECB Crisis Policies
The Federal Reserve’s (Fed) and European Central Bank’s (ECB) policy responses to the recent financial disasters offer two tales of unintended consequences. Our previous post outlined the undesired...
View ArticleThe Regression Theorem: In Light of Bitcoin
In three previous posts, I have described the regression theorem, discussed its practical applications, and considered some misconceptions. In this post, I will consider the regression theorem in light...
View ArticleThe Inflation Tax
Can you name an official at a major central bank who expresses worries that inflation is now, or soon will be, too high? Can you identify any financial publication–even the Wall Street Journal–that...
View ArticleKnowledge Problem in Central Banking – Part I
In my previous posts, Andreas Hoffmann and I discussed the problem of unintended consequences in monetary policy, particularly as applied to the U.S. Federal Reserve and the European Central Bank in...
View ArticleKnowledge Problem in Central Banking – Part II
The previous post presented Hayek’s knowledge problem in the context of the economic calculation debate under socialism. We discussed the distinction (sometimes overlooked) between information and...
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