The idea that inflation must result if a money supply grows faster than the real economy over a sustained period is accepted as a general rule by most economists. While this did not originate with Milton Friedman, his articulate evangelism…
Why the feds are going after Standard & Poors
The Justice Department’s recent action against Standard & Poors over that firm’s ratings of mortgage-backed securities in the run-up to the 2007 economic debacle is causing some controversy. Sundry commentators — wondering if the action is payback for S&P’s downgrade…
Rising meat prices illustrate economic principles
Beef prices are rising so sharply that it’s possible McDonalds will be forced to remove its popular McDouble from the Dollar Menu. The item’s high beef content makes the ratio of ingredient cost vs. price less favorable than for other…
Wall Street power deters effective reform
Where are the snows of yesteryear? Or, for that matter, where are Kuhn Loeb, Dillon Read, Brown Brothers Harriman or any of the myriad investment banks that once were famous on Wall Street but no longer exist? Does it matter?…