TheQuantityTheoryofMoneyisWrong http://feedly.com/k/143HfKI The quantity theory of money is still at the heart of mainstream analysis of price movements and inflation. In essence, there are two versions of theory: (1) The Equation of Exchange: MV = PT, where M = quantity of money; v = velocity of circulation; P = general price level, and T = total number of transactions. (2) the Cambridge Cash Balance equation: … Seguir leyendo The Quantity Theory of Money is Wrong

MonetaristsFailHistory, Time andAgain http://feedly.com/k/1310ydF Certain supporters of monetarism are telling me in the comments on my last post that the central bank can indeed directly control the broad money supply. Well, that was news to Milton Friedman as reported in a 2003 interview: “… prepare to be amazed: Milton Friedman has changed his mind. ‘The use of quantity of money as a target has not … Seguir leyendo Monetarists Fail History, Time and Again

MonetaristsFailHistory, Time andAgain http://feedly.com/k/1310ydF Certain supporters of monetarism are telling me in the comments on my last post that the central bank can indeed directly control the broad money supply. Well, that was news to Milton Friedman as reported in a 2003 interview: “… prepare to be amazed: Milton Friedman has changed his mind. ‘The use of quantity of money as a target has not … Seguir leyendo Monetarists Fail History, Time and Again

España: “Bruselas apoya bajar los salarios el 10% en España como pide el FMI” http://feedly.com/k/15LpO8f La propuesta del FMI, publicada la semana pasada, de disminuir los salarios en España en un 10% como medida de ayuda en la creación de empleo, ha encontrado un “aliado relevante”, seña El País. Se trata de Olli Rehn, el vicepresidente de la Comisión Europea y responsable de los Asuntos … Seguir leyendo España: “Bruselas apoya bajar los salarios el 10% en España como pide el FMI”

Portugal: “El paro comienza a bajar” http://feedly.com/k/1310drh Según los datos del Instituto Nacional de Estadística portugués, publicados este 7 de agosto, el paro en Portugal ha bajado en este segundo trimestre, pasando de 740.062 solicitantes de empleo en enero a 689.933 en junio. Se trata, señala el Jornal de Notícias, de la más importante bajada desde 2000. La tasa de paro no ha dejado de … Seguir leyendo Portugal: “El paro comienza a bajar”

Towards a radical new theoryof Anglo-Americanslavery, andvindicationoffreemarkets – Telegraph http://feedly.com/k/14kIkSl shared via http://feedly.com Seguir leyendo Towards a radical new theory of Anglo-American slavery, and vindication of free markets – Telegraph

China’sCredit Crisis InCharts http://feedly.com/k/1baJ4eO The rapid pace of China credit expansion since the Global Financial Crisis, increasingly sourced from the inherently more risky and less transparent "shadow banking" sector, has become a critical concern for the global markets. Fromtheendof 2008 untiltheendof 2013, Chinesebanking sector assetswillhaveincreasedabout $14 trillion. As Fitch notes, that’sthesizeoftheentireUScommercialbanking sector. So in a span of five years China will have replicated the whole … Seguir leyendo China’s Credit Crisis In Charts

LynnParramore: BoomerangBabies – RecordNumbersofYoungAdultsLivewithParentsat Terrible Cost http://www.nakedcapitalism.com/2013/08/lynn–parramore–boomerang–babies–record–numbers–of–young–adults–live–with–parents–at-terrible-cost.html Yves here. Recent media commentary on the state of the housing market has finally picked up on something that shouldn’t be news: that most young people are in lousy financial shape and therefore are in no position to buy a home. Many are burdened by student debt, and even if they’ve managed to dodge that bullet, it’s hard … Seguir leyendo Lynn Parramore: Boomerang Babies – Record Numbers of Young Adults Live with Parents at Terrible Cost

India’sfinancialprophetRaghuram Rajan torun central bank – Telegraph http://feedly.com/k/1eqGIrT shared via http://feedly.com Seguir leyendo India’s financial prophet Raghuram Rajan to run central bank – Telegraph