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You must also realize that an imperfection in the market does not connote any ability in the government to a) accurately know it b) correct it or c) respond to it without causing problems that are even worse Free markets are not perfect (nothing is); they are merely optimal.
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Thanks Giles. I thought the "K" was a typo.
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[quote user="Koen Swinkels"] The Philosophical origins of Austrian Economics, David Gordon [/quote] Thanks Koen, I have a question about this one, for you or anybody else who could answer. Gordon says, "Logical positivism (Carnap, Karl Menger, Schlick, Neurath, etc.) attacked synthetic a priori and deductivism." Menger was a positivist
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[quote user="Robert"]reasonably familiar with the topics you are presenting on a forum board, before posting.[/quote] Isn't "reasonably familiar" somewhat arbitrary, especially regarding teenagers, who we should be ecstatic are even asking about this stuff? Most teens wouldn't even tolerate listening to someone telling them
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[quote user="edward_1313"] Durable Consumer good = part immediately serviceable good + part indirectly serviceable good The latter requires additional time, the complementary good. A TV, a house, car, etc. are goods that continuously mature into present goods. Their future services are, subjectively speaking, capital goods. Often the more
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Be sure to mention that Bush couldn't have paid for his wars without the Fed.
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[quote user="CuriousGeorge"]Do you even know what I refer to when I say debt overhang?[/quote] Quantitative easing, the way the Fed would conduct it, IS interest rate policy. New and additional money in the banks mean new and additional credit. An increase in the supply of credit means a lowering of the rate of interest. Yes quantitative easing
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[quote user="Daniel"]I've postulated that the reason why the housing bubble popped was because the homebuyers could not afford their payments. When the homebuyers made their calculations, to see if they could afford the house, they didn't account for such a huge rise in their cost of living (such as, the price of gasoline, food, education
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[quote user="krazy kaju"]An increase in the money supply does not cause a crisis. If the money supply increased equally across all sectors of the economy, there would not be any malinvestment, only price inflation.[/quote] Indeed, that's why I wrote this: The money supply increase in the present system is in the form of bank money. This
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wilderness, thanks so much for taking the time to tackle this. [quote user="wilderness"]I don't know if malinvestment is to be explicitly considered in the ABCT or not.[/quote] At least according to "classical" ABCT it is: Projects which would not have been thought "profitable" if the rate of interest had not been influenced