Craig Duddy
@craigduddyecon
20. Undergraduate in Politics/Economics. Student of liberalism from Scotland. I study economics, and political economy!
Public Choice Theory is a vital analytical tool for navigating modern political economy. Spurred by the research programme of the classical economists, James Buchanan, Gordon Tullock and others provided a modern foundation for analysing the state. Here’s how: 🧵
Actually in biology such behaviour is called an organism and all of them are operating under this notion and have been since life first apeared.
A democratic system does not necessarily have to enable the 51% to ‘take everything from the 49%’. This is the value in constitutional rules which are designed from behind the veil of ignorance, where everyone has an interest in ensuring fair and universal rules.
Imagine thinking a 51% vote justifies taking everything from the other 49%.
IT'S FINALLY HERE! My first substack post of my substack 'Living in the Short-Run'! I added stuff to an essay I wrote for class. What is the Financial Instability Hypothesis? What does it say? What are its policy implications? And more! substack.com/home/post/p-16…
1️⃣ The economy is doing well 2️⃣ Ergo, no need for expansionary policy 3️⃣ Inflation is above target Ergo, 2️⃣ again
.@POTUS on meeting with Jerome Powell yesterday: "I think we had a very good meeting on interest rates... He said to me, very strongly, 'The country is doing well' ... And I got that to mean that I think he's going to start recommending lower rates."
*Monetary* deflation is a terrible thing to happen. Productivity changes in line with falling prices on the other hand, is benign.
Deflation is a terrible thing to happen with those who have debt… usually the working class. They are advocating for extreme class divide, not libertarianism
What I'd love is a relatively short book that goes over some of the main arguments and core tenets of various schools of economics while steelmanning each one's case and going over what they get right and wrong. New Keynesians, New Classicals, Post-Keynesians (& MMT), Chicago...
"[Austrian economists] never identify [malinvestments] before the downturn." Neither, of course, do investors themselves! The _whole point_ of the theory is that no-one can tell where funds are being malinvested 'til the crash because easy money is distorting relative prices! 1/2
Austrian economists, pointing to “malinvestments” after a recession. Yet, they never identify them before the downturn. Aka retrospective prediction: fails both the prediction test and the falsification test.
What?
If the government keeps losing its wealth the welfare state is over. On @LBC just now.
I once again repeat—for the millionth time to heterodox thinkers—a lack of legal reserve requirements DOES NOT and HAS NOT meant that banks do not hold reserves. This piece talks about the ‘functional’ monetary system, and then ignores how it works!
x.com/i/article/1946…
Rothbardians when they see good economics:
Free Banking as a school of thought of contradictory paradigms only makes sense from the standpoint of trying to be relevant and engaged with the economics establishment and the financial sector. It otherwise makes no sense from the standpoint of being legitimate science.
For an antidote to that dismissal (and its close New Classical economics counterpart), I highly recommend Leland Yeager’s essay, “The Significance of Monetary Disequilibrium.” (Yeager was, among other things, a longtime associate of the Mises Institute.) cato.org/sites/cato.org…
New on the CLC Blog: “Every few years there is a new boom, a new inflation that eventually reverses itself and reduces the living standards of people... Yet, our politicians seem helpless to stop it. Here is why our system seems so unstable, and how we can put an end to it.”