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Politics

An Economist’s 2020 Presidential Election Guide

This is an objective guide to the US 2020 Presidential election from an economist ‘s standpoint. Since the economy is the number one determinate criteria for people voting on the margin, and will swing election results, I think a guide to US economic issues is relevant. I also have a brief candidate guide to the […]

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Economics

Can Money be Neutral?

Central banks pursue a policy of money neutrality. Except when they are seeking a monetary policy to steer the economy. Money neutrality means money has no impact on the workings of supply and demand in the real sector. That is, money is just a veil or a cloak. Money’s influence and function are to serve […]

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Economics

Multiple Natural Rates of Interest – Pierro Straffa

The natural rate of interest is a rate of interest is a rate of interest that exists in natura, that is, if there were no use of money. The Wicksellian marginal productivity on capital in a barter economy. This posts looks at the significance of multiple natural rates and offers one avenue to pursue for […]

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Economics

Free Banking as an Alternative to the Federal Reserve

Free banking compared to Central Banking Free banking is money that is issued by free-market private banks with minimal regulation and clear market rules in a competitive environment. Free banking has worked throughout history, yet for ideologically derived and fiscal expansion reasons it is jettisoned for government-controlled money. The idea is a few intellectuals know […]

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Real Estate

How to Build a Cheap Home – An Economist’s Recommendation

I am a real estate agent and an Economist. I also am a do it yourself/quasi homesteader. That being said since I have been a real estate agent for years and a cheapskate all my life, I have observed how others construct a home cost efficiently. I have lived in different parts of the world […]

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Economists

David Ricardo On the Principles of Political Economy and Taxation in PDF

On the Principles of Political Economy and Taxation by David Ricardo was written in 1817. The Economic themes in this book were value and free trade. The book also addresses many subsidiary issues. You can download it here: On the Principles of Political Economy and Taxation by David Ricardo in PDF I recommend you download […]

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Money

If You Want to Make Money in a Capitalist Economy be a Capitalist

‘If you want to make money be a capitalist’. It is that simple. My father told me that and he will be 92 this year and remembers The Great Depression and his parents fled communist and feudalism. He has some wisdom. I am getting a PhD in economics. I will give you specific examples of […]

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Economists

Michael Woodford – Financial Intermediation and Macroeconomic Analysis – Review

Michael Woodford’s 2010 paper “Financial Intermediation and Macroeconomic Analysis”, improves his theory that was articulated in this book, Interest and Prices (2003). He based this on the data and experiences from the 2008 financial crisis and changing ideas in monetary economics since his 2003 work. I have academic respect for Michael Woodford, this review is […]

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Economists

Natural Rate of Interest- Wicksell – Price Stability

Price Stability equated with neutral money Wicksell’s third definition of the natural rate of interest focused on the price level. That is there is a rate of interest that tends neither to increase or decrease prices. That is, when the observable market rate of interest is at a certain level, the price level will be […]

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Economists

Natural Rate of Interest – Wicksell – Loan Capital Equal

Demand and Supply of Loan Capital Equal Wicksell’s second definition of the natural rate of interest is the rate at which the demand for loan capital and the supply of loan capital is equal. Wicksell writes “The rate of interest at which the demand for loan capital and the supply of savings exactly agree, and […]