Money and Finance
- Richard Duncan Quotes
Longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren’t necessarily the paragraphs I have put them in below, and there may be things in between that I didn’t highlight).The quantity theory of money held that...
- Richard Duncan Quotes
Longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren’t necessarily the paragraphs I have put them in below, and there may be things in between that I didn’t highlight).Part of the reason that monetarism failed...
- Richard Duncan Quotes
Longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren’t necessarily the paragraphs I have put them in below, and there may be things in between that I didn’t highlight). [Irving] Fisher reasoned that the velocity...
- Jeff Glor Interviews Richard Duncan (video)
Jeff Glor talks to Richard Duncan about, "The New Depression: The Breakdown of the Paper Money Economy Jeff Glor: What inspired you to write the book? Richard Duncan: I was inspired when I read Irving Fisher's "The Purchasing Power of Money" (1912)...
- Henry Hazlitt On The Troubles Of Even A Mild Inflation
Via the WSJ: Even a relatively mild inflation distorts the structure of production. It leads to the over-expansion of some industries at the expense of others. This involves a misapplication and waste of capital. When the inflation collapses, or is brought...
Money and Finance
Richard Duncan quotes
“There is one other aspect of the quantity theory of money that is important to understand. This theory is concerned with the impact that a change in the quantity of money (M) has on the price level (P ). It does not preclude the possibility, however, that other factors in addition to the quantity of money can also affect prices.
It will be essential to keep this in mind when considering the implications of the quantity theory of credit because there has been one development other than the extraordinary proliferation of credit that has had a truly extraordinary impact on prices during recent decades, globalization.
Globalization has resulted in a 95 percent decline in the marginal cost of labor in a relatively short span of time.
…had the price of labor not collapsed, the world would have been beset by hyperinflation long ago.
As the 1980s progressed, however, monetarism lost credibility as it become clear that monetary targeting did not always deliver the expected results. The price level did not change in exact accordance with the quantity of money as the theory held it must. In particular, the velocity of money (V) proved to be erratic and unpredictable.”
–Richard Duncan, The New Depression
- Richard Duncan Quotes
Longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren’t necessarily the paragraphs I have put them in below, and there may be things in between that I didn’t highlight).The quantity theory of money held that...
- Richard Duncan Quotes
Longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren’t necessarily the paragraphs I have put them in below, and there may be things in between that I didn’t highlight).Part of the reason that monetarism failed...
- Richard Duncan Quotes
Longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren’t necessarily the paragraphs I have put them in below, and there may be things in between that I didn’t highlight). [Irving] Fisher reasoned that the velocity...
- Jeff Glor Interviews Richard Duncan (video)
Jeff Glor talks to Richard Duncan about, "The New Depression: The Breakdown of the Paper Money Economy Jeff Glor: What inspired you to write the book? Richard Duncan: I was inspired when I read Irving Fisher's "The Purchasing Power of Money" (1912)...
- Henry Hazlitt On The Troubles Of Even A Mild Inflation
Via the WSJ: Even a relatively mild inflation distorts the structure of production. It leads to the over-expansion of some industries at the expense of others. This involves a misapplication and waste of capital. When the inflation collapses, or is brought...