ekonomi politikë shkencë
I. Introduction
My aim in this research paper is to investigate whether the current monetary arrangement has achieved the promised stability, and if not, what other options can we look to solve the problem from an Austrian School perspective. We can summarize the current monetary arrangement as an interdependent relationship between the central bank, fractional-reserve banks and fiat money.
Continue reading “Monetary Stability and the Case for Gold Standard (University paper)”
Some economists, usually Keynesian, have suggested that China’s recent growth has come as a result of following the so-called “exports-growth” model. The explanation behind this is that China is doing well because of exporting so much (China overtook Germany in 2009 as the largest exporter). This has been possible, Keynesian economists say, due to China’s central bank low interest rate policy, which still fights to keep the Chinese currency yuan (RMB) artificially undervalued against the dollar (the biggest buyer of Chinese products). This in turn makes Chinese products cheaper vis-à-vis the dollar and other currencies and therefore stimulates export in a large scale.
The anthropogenic global warming (AGW) idea is the current trend. With the Intergovernmental Panel on Climate Change (IPCC) and politicians all over the world at the forefront of the crusade, the message of saving the world from disaster is being lauded ever more. Based on “scientific evidence,” politicians are urging direct action to combat carbon dioxide emissions which they believe to be the main cause. Considerable action on the part of private non-governmental groups is also underway, with organizations such as Greenpeace going as far as to violate private property in a “peaceful” attempt to raise awareness.1 The general public’s stance doesn’t seem to be crystal clear, but there is no doubt that the idea of AGW is now widespread and that people are very lenient toward accepting it.
Economists and media from the mainstream have given the average person the belief that it was lack of regulation and laissez-faire capitalism that caused the financial crisis in the United States. Some other reasons have been cited too, but all have been within this major idea that the state failed to keep the financial institutions in check. It is interesting to note that people tend to ignore the government as a possible source of the problem. There are voices who condemn it, but not in the sense that government caused the crisis, rather that it failed to prevent it.
Continue reading “The Big Myth: Capitalism Caused the Crisis (University paper)”