-
The evidence that you cite does not in fact make the case that more regulation yields a sounder financial system. Again, the American financial system is highly regulated. The conclusion drawn is that certain regulators and certain types of regulation yield financial stability, i.e., one where the regulators are consolidated into a uniform body as opposed
-
[quote] How is that possible?? [/quote] How is it possible that people tend to work more when their expected rate of return is higher? I think you can answer that question for yourself. Also, it's the conclusion that Prescott made after looking at the data. He found a strong correlation, globally, between tax rates and the amount of hours worked
-
It's because we have the lowest (effective) individual tax rates in the world.
-
[quote] Well, if markets worked, the unregulated banking sector wouldn't be allowed to exist for any extended period of time. [/quote] The financial sector is the second most regulated industry in the economy right behind energy. Most of the regulations have proven to be destablizers; they have created unintended consequences which contributed to
-
[quote] As a matter of fact, in the real bills example I gave a page or so back, this could happen with any issuing institution. [/quote] It could.. but not for any extended period of time. [quote] But if the central bank has the power to create its own demand, can't it reduce it, too? [/quote] It could, but where's the incentive to do it? There
-
[quote] Which is exactly what a shock to the privately created money supply would do. [/quote] It may or may not. We should expect gold exploration and production to increase when the demand for it increases (either as money or for industrial use) . Thus, the supply of gold would react to the demand for it, yielding a sort of equilibrium for the monetary
-
[quote] Voluntary time preferences, sure, whatever, but Austrolibertarianism says that increases in the money supply cause the business cycle. [/quote] I don't know what Austrolibertarianism says about trade cycles, but I know that most Austrian economists agree that business cycles are primarily caused by an increase in the supply of money beyond
-
[quote] This from someone who can properly define neither " slave " nor pure, organic " capitalism " in a coherent, meaningful form. [/quote] Prove it.
-
[quote] I agree with this statement. If you accept this assertion (I assume you do), then you know that the mere existence of the state, however small, hinges on the existence of taxes. These taxes will produce inorganic fluctuations in the market in proportion to the state's size and scope. So, while you may have a very small state, and a mostly
-
When the facts change I change my mind.