ALL BLOG POSTS
I am continuing my mini-series on modern US monetary history through the lens of my decomposition of supply inflation and demand inflation based on what I inspired by David Eagle have termed a Quasi-Real Price Index (QRPI). In this post I will have a look at the early 1980s and what have been termed the Volcker disinflation.
I am always open to accept different guest blogs and I therefore very happy that "Integral" has accepted my invitation to do a number of reviews of different papers that are relevant for the discussion of monetary theory and the development of Market Monetarism.
In my recent post on "boom, bust and bubbles" I tried to sketch a monetary theory of bubbles. In this post I try to give an overview of what in my view seems to be the normal chain of events in boom-bust and in the formation of bubbles. This is not a theory, but rather what I consider to be some empirical regularities in the formation and bursting of bubbles - and the common policy mistakes made by central banks and governments.
Recently it has gotten quite a bit of attention that some investors believe that there is a bubble in the Chinese property market and we will be heading for a bust soon and the fact that I recently visited Dubai have made me think of how to explain bubbles and if there is such a thing as bubbles in the first bubbles.
It is Christmas time and I am spending time with the family so it is really not the time for blogging, but just a little note about something I have on my mind - Irving Fisher's Compensated dollar plan and how it might be useful in today's world - especially for small open economies.