Tag Archives: central banking

Disaggregating the Equation of Exchange

The equation of exchange states that MV=PQ. As formulated by Friedman, the equation is stated as MV=PY. Money times velocity equals the price level times total output Q, or total income Y, or transactions T, which are the same in what might be called a “closed” economy. Let me further explain this simple tautology. All […]

Circling Down the Drain

Awake – Textures Who would’ve thought that Ol’ Yellen would’ve been the one to take the economy out back and shoot it? I ask this in not a bitchy, simpleton, Krugmanesque manner, but in an Austro-monetarist one. Seven years of All-American ZIRP have thrust the country into an orgy of both consumption and investment: an […]

stockman as an austrian friedman

david stockman is a genius. he integrates stock analysis, fiscal policy, capital theory, macro theory, and monetary theory into every conversation you hear with him. stockman is essentially the austrian version of m. friedman: please oh god, don’t let this insanely debt-wrought and volatility-prone government-controlled economy kill us (or the government itself kill us, a […]