Month: January 2015

The Bear’s Lair: What happens if we get real deflation?

Ben Bernanke spent his entire Fed career wittering about deflation, from his initial “helicopters” speech of 2002 on. Yet we never got it, or even close to it. Ironically, a year after Bernanke’s replacement by a like-minded successor, we finally appear close to genuine deflation. The balance of probabilities must still be against it, but […]

The Bear’s Lair: Another new theory to bash

In an inevitable development, the proponents of greater government spending have developed a new theory to encourage it. With Senator Bernie Sanders (I.-VT)’s appointment of its proponent University of Missouri-Kansas City professor Stephanie Kelton as minority chief economist to the Senate Budget Committee, the new Modern Monetary Theory is about to get a serious airing. […]

The Bear’s Lair: The Uberized economy is death to quality

Last week’s Economist magazine had a leading article and lengthy feature “The future of work” looking at the Silicon Valley companies such as Uber and Airbnb that, by creating the “on-demand economy,” have turned employees into freelancers. Their emergence has like most innovations been opposed by entrenched interests, with both Uber and Airbnb facing legal […]

The Bear’s Lair: The appeal of populist economics

The Greek government’s failure to elect a President has caused a snap election on January 25, at which the left-populist party Syriza seems likely to win a majority. Similar parties in Spain (Podemos) and to an extent Italy (the Five Star movement) are also a threat to established political norms. On the other political side, […]