This week on the
podcast I had a great time talking the monetary disequilibrium view of business cycles with Steve Horwitz. This perspective sees the deviation between desired and actual money holdings as the cause of business cycles. Since money is the one asset on every market, all one needs to do is disrupt monetary equilibrium and you have disrupted every other market. This is not true for any other asset. The monetary disequilibrium view, in short, takes money seriously.
This understanding is different than the dominant view today that sees business cycles being the result of deviations between the expected paths of the natural and actual real interest rate. After the show I asked Steve if there was mapping between these these two views and he said yes. The views should be complementary. Nonetheless, the monetary disequilibrium view rarely get a hearing so I was really glad to do this interview with Steve.
I have also posted below a presentation I used to give my undergraduates on monetary disequilibrium. It provides some of the graphs Steve mentioned in the interview. Finally, I highly recommend Leland Yeager’s book
The Fluttering Veil: Essays on Monetary Disequilibrium. Yeager was a leading advocate of this view and his book provides an accessible introduction to the topic.[Update: for those wanting a formal treatment see this
Josh Hendrickson paper (
ungated version)]
Source:
http://macromarketmusings.blogspot.com/2017/06/monetary-disequilbrium.html
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.
Anyone can
join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist
Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).