Econ 101: Do We Need a New Theory of Market Stability?

admin — Wed, 11 Nov 2009 18:51:47 +0000

Gary Wolfram, Ph.D.

In a recent Newsweek article, senior editor Michael Hirsh quoted Larry Summers who said: “Large swaths of economics are going to have to be rethought on the basis of what's happened.” Summers is correct that the recent credit crisis and recession has generated books and papers galore in attempt to provide an explanation for the crisis and suggest remedies.

Econ 101: The Financial Crisis and Danger of Government Intervention

admin — Wed, 08 Oct 2008 12:12:04 +0000

Gary Wolfram, Ph.D.

Ludwig von Mises in a classic 1927 book, Liberalism, wrote that government intervention in markets would lead inevitably to unintended consequences that resulted in further government intervention.

The current financial difficulties are the result of a series of government actions that has culminated in vastly expanded government intervention in the credit markets, which may provide short-term relief but is dangerous in the long run.

LudwigvonMises

Econ 101: Do We Need a New Theory of Market Stability?

Econ 101: The Financial Crisis and Danger of Government Intervention