The Venezuelan Crisis and the Political Costs of Reforms

by Pablo Duarte* Venezuela is in deep political and economic crisis. According to Reuters – quoting a leaked document from the Venezuelan Central Bank – output fell 19% and prices increased 800% during 2016. Even though the “Socialism of the 21st Century”, the political program initiated by former President Hugo Chavez, has been losing support … Continue reading The Venezuelan Crisis and the Political Costs of Reforms

Thomas Mayer: “I am an Austrian in Economics”

by Andreas Hoffmann In today's publication Thomas Mayer writes that he is "an Austrian in economics." Mayer is the chief economist of Deutsche Bank Group and head of Deutsche Bank Research. Mayer argues that Austrian theory fits recent events well.  He suggests that "Failure of the liquidationists to overcome the Great Depression of the early … Continue reading Thomas Mayer: “I am an Austrian in Economics”

The bailout is not supposed to help you

by Roger Koppl The Los Angeles Times reports that the “Federal bank bailout isn't trickling down.”  No kidding.  I remember Dušan Mramar telling me years ago that the purpose of privatization in the old Soviet block was restribution, not economic efficiency.  We’re looking at something similar with the bailout.  The purpose of the bailout is redistribution, … Continue reading The bailout is not supposed to help you