- Paul Krugman on why gold prices fit his understanding of what's going on.
- Karl Smith on what I'm going to call private Keynesian governance. I have reservations along the lines he raises at the end - but his point is good. Thinking about incentives in this way will help to explain Keynesian claims and get past this cop-out that we just love government.
- Robert Blumen at the Mises Institute discussing Rothbard's views on inventories. I think he levels a very thoughtful critique of Rothbard - a thoughtfulness I often find lacking there (I can't remember the last post there I liked that wasn't by Bob or Jonathan). One major shortfall of the piece was a sin of omission. Two words that never appeared were "interest rate". The decision whether to hold inventory or not is intimately related to the interest rate, and if Rothbard doesn't understand this, then people need to approach anything Rothbard says about ABCT or Hayek with caution.
What About Trade Deficits, Anyway?: DeLong FAQ
10 hours ago