With the Federal Reserve’s taper summer having created “dollar” troubles throughout the known credit world, there is renewed interest in eurodollars and wholesale money. When the world previously took note in August 2007 (at least those that were paying attention) it was an introduction into modern banking. Gone are the days when banks took in currency (in the form of [...]
In 1964, Milton Friedman suggested the economy behaved like a string set along a piece of wood on an upward slope. The string, hugging the underside of the wood, represented the economy moving along the track of potential (the piece of wood), rising with productivity (the upward slope, or trend). Occasionally, an external shock would “pluck” the string downward, representing [...]
A version of this article by Jeffrey Snider appeared last week on Real Clear Markets: For those who appreciate the powerful abilities of free markets to advance the cause of humanity, the occasion of Milton Friedman’s birthday is a time to celebrate. For many it is also an opportunity to revisit his work and muse about how it applies to [...]
By John L. Chapman, Ph.D. July 6, 2012 Washington, D.C. The new data on the economy this week suggest continued growth – in the 1.4-2.2% per annum range. Events in Europe will continue to have an outsized effect on investor psychology in the U.S., capping the upside to growth and valuations both. And, 2nd quarter corporate profits will be telling. [...]
The Fate of the Euro, and Euro Investors By John L. Chapman, Ph.D. June 17, 2012 Washington, D.C. The world economy is truly suspended on a knife’s edge at the moment, as events in Europe push toward a settlement after years of reckoning postponement. Global stock markets, led by undervalued U.S. equities, would soar in the event of credible commitment to [...]
Thinking Things Over May 28, 2012 Volume II, Number 21: Remembering Milton Friedman in the Torpor of 1980 By John L. Chapman, Ph.D. Washington, D.C. Amidst continuing nervousness about the Eurozone and slower global growth, political debate in the U.S. is centered around the best path forward to return to sustainable prosperity. The Wall Street Journal reminded us this [...]
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