Andrew Lainton — Racing to Port – Whilst Draining the Sea – Hawtry & the Global Deflation Spiral

The impossible trinity again.

Decisions, Decisions, Decisions
Racing to Port – Whilst Draining the Sea – Hawtry & the Global Deflation Spiral
Andrew Lainton

See also

Coppola Comment
The problem with words

Frances Coppola

David Glasner — Keynes on the Theory of Interest

Criticism of Keynes on the Theory of Interest

Uneasy Money

Keynes on the Theory of Interest
David Glasner

David Glasner — Keynes and Accounting Identities

In principle, I have no problem with such a use of accounting identities. There’s nothing wrong with pointing out the logical inconsistency between wanting Germany to pay reparations and being unwilling to accept payment in anything but gold. Using an accounting identity in this way is akin to using the law of conservation of energy to point out that perpetual motion is impossible. However, essentially the same argument could be made using an equilibrium condition for the balance of payments instead of an identity. The difference is that the accounting identity tells you nothing about how the system evolves over time. For that you need a behavioral theory that explains how the system adjusts when the equilibrium conditions are not satisfied. Accounting identities and conservation laws don’t give you any information about how the system adjusts when it is out of equilibrium. So as Pettis goes on to elaborate on Keynes’s analysis of the reparations issue, one or more behavioral theories must be tacitly called upon to explain how the international system would adjust to a balance-of-payments disequilibrium.…

Uneasy Money
Keynes and Accounting Identities
David Glasner

Scott Sumner — Ralph Hawtrey

You may wonder why I chose to name my chair at Mercatus the “Ralph Hawtrey Chair of Monetary Policy.” Here are a few reasons:

Money Illusion
Ralph Hawtrey

Scott Sumner | Ralph G. Hawtrey Chair of Monetary Policy at the Mercatus Center at George Mason University