Wednesday, February 17, 2010

Boom-Bust Index

Below are links to my recent posts.

Part 1 - Today's crisis as an instance of the classic inflation-depression or boom-bust cycle

Part 2 - Positivism, empiricism and the self-induced myopia of the economics profession

Part 3 - Brief review and analysis of 19th century monetary history; gold the hero, government the villain

Part 4 (coming soon)

4 comments:

Tom said...

Has anyone ever made a timeline chart of economic booms and busts which is marked with governmental action as pertains to money? I'm thinking something like:

1913 - Federal Reserve Created
1920 - Financial Crisis
1921 - Government does nothing, crisis over
1929 - Stock Market Crash
1930-45 - Government prolongs crisis with massive spending

something like that?

Doug Reich said...

Tom,

Hilarious. I have seen charts like that, but probably not as blunt. I'll hunt around or create one myself at some point. Great idea.

Doug

Burke said...

The stock market crash was caused by the Federal Reserve: first, allowing the money supply to inflate to create a boom; then, tightening the moneys supply to "take the punch out of the party" (according to Leonard Read).

Also, the Great Depression was caused by even more govt intervention, including higher taxes and strict protectionist legislation.

Harold said...

Off topic, but thought you might find this amusing.

http://limerickseconomiques.blogspot.com/

Tuesday's was particularly good.

At the hour of the Euro's creation,
To belong was the yen of each nation,
But to meet its constraints,
Some resorted to feints
Of financially flawed derivation.