Category Archives: Classical Economics

Distributing incomes to match what each of us deserves

I received a very kind note from someone I had spoken with at the Historians of Economics conference the other day which I had discussed here. She sent me two articles, one from the economist Greg Mankiw, and the other … Continue reading

Posted in Classical Economics, Economics on the left, Philosophy | 3 Comments

Have these people never heard about this thing called the market?

As I sometimes mention, the only area I really disagree with Donald Trump about is interest rates. Keeping rates high enough to sort out good investments from bad actually makes an economy more productive and growth oriented. The Fed is … Continue reading

Posted in Classical Economics, Economics and economy | 14 Comments

Learning from history

Spent the last couple of days at the History of Economic Thought Society of Australia meeting which was, as always, filled with interest and revelation. There are a handful of us on the free market side of things, but it … Continue reading

Posted in Classical Economics, Economics and economy | 27 Comments

Classical inflation

Being a classical economist myself, I understand what the classicals meant when they said that public sector deficits lead to inflation. They meant that if a government ran a deficit, they would eventually be forced to inflate the money supply. … Continue reading

Posted in Classical Economics, Economics and economy, Economics on the left | 19 Comments

Garrison on Austrian trade cycle theory II

Here is a post from 2011 where Roger Garrison explains Austrian Capital Theory and the problem of artificially low interest rates. For some context, the  ASX 30 Day Interbank Cash Rate Futures market is forecasting that official interest rates will decline … Continue reading

Posted in Classical Economics, Economics and economy | 4 Comments

The RBA is run by incompetents

Really beyond stupid. Purely destructive, but I suppose you can’t expect them to know any better since they are all students of modern macro: RBA cuts official cash rate to 0.75pc at October meeting. They continue with all of their … Continue reading

Posted in Classical Economics, Economics and economy | 90 Comments

Costello joins the resistance

Peter Costello was Australia’s greatest Treasurer bar none. Today in The Oz there is a front page story that reminds me just how much this is so: RBA cuts won’t help the economy, says Peter Costello, with the subtitle, “Former … Continue reading

Posted in Classical Economics, Economics and economy, Federal Politics | 36 Comments

Free speech as an economic principle

This is John Stuart Mill discussing freedom of speech as an economic issue in his Principles of Political Economy (1848), in my view the best single text on economics ever written. Freedom of speech, as he writes in the passage … Continue reading

Posted in Classical Economics, Freedom of speech | 6 Comments

Keynesian economics is guaranteed to make an economy’s problems worse

This is Judy Sloan stating as clear as you like: Time to get the budget in surplus and pay off debt. What it is really about is how disastrous Keynesian economics is and always has been. I am a month … Continue reading

Posted in Classical Economics, Economics and economy | 8 Comments

A classic case of economic ignorance

I am in the midst of finishing off a book on classical economic theory from which, and only from which, you can discover just how fatal to economic health modern economic theory is. The Australian economy is not far from … Continue reading

Posted in Classical Economics | 19 Comments