Category Archives: Uncategorized

Kept in the dark

Posted on March 24, 2014 by

In my last post, I shared the news that the MPC keeps no minutes of its meetings. I had pondered whether there would be any gain in trying to use the Freedom of Information Act to force the Bank to … Continue reading →

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What has the MPC got to hide?

Posted on March 15, 2014 by

News to light the fires of the paranoid and conspiracy theorists out there: The Bank of England’s Monetary Policy Committee (MPC), the group which decides on interest rates each month, keeps no minutes of their meetings. We’ve argued on this … Continue reading →

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The Bank of England must share the blame for the cost of living

Posted on January 21, 2014 by

Many central banks now have “inflation targets” that they are required to meet, and such targets are set by the government. For the Bank of England, this target is 2%, and is based on the Consumer Price Index (CPI). Some … Continue reading →

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Quote of the Day

Posted on January 15, 2014 by

Upon observing an airplane fly, one doesn’t assume that apparently the law of gravity doesn’t apply to metal plane-shaped things. Rather, you intelligently realize instead that other forces must be in operation on the plane. Similarly, we should not assume … Continue reading →

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The illusion of stock market prosperity

Posted on November 24, 2013 by

The ups and downs of the stock market is reported daily, hourly – continuously on some news channels. Stock markets are seen as indicators of the overall economy. A rising stock market means prosperity, and a falling stock market spells … Continue reading →

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The debt limit explained

Posted on October 17, 2013 by

I’ve been too busy to post much recently, but this is a nice satirical look at the US debt limit: H/T Coyote Blog

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Forward guidance

Posted on August 19, 2013 by

One of the notably sinister traits of a central bank is the act of collaboration (read, collusion) between countries: they can’t exist for long without it. It is therefore not surprising that when Ben Bernanke issued a statement linking future monetary policy … Continue reading →

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The subtle Cantillon effects of inflation

Posted on August 4, 2013 by

The biggest problem with increases in the money supply is not that it causes a rises in prices – that monetary inflation can cause price inflation – for this is what we would expect to happen in most cases. Rather, … Continue reading →

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The Myth of Democracy

Posted on July 27, 2013 by

This week, the US congress voted on an amendment to stop the NSA’s PRISM program which has been making headlines for the past few weeks. Unfortunately, the vote was defeated in the House of Representatives by 217-205, and so the NSA … Continue reading →

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The new man at the helm

Posted on July 9, 2013 by

At the start of July, Mark Carney became the new Governor of the Bank of England. He appears to have taken his job at a time when there is greater optimism regarding the state of the UK economy, which has … Continue reading →

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