An illustration of the impact of financial regulation on capital allocation is the extent to which the world's savings have been attracted to long-term instruments with low yields.
It’s unlikely that banks and government can be disentangled, but a healthier relationship could begin with a new approach to credit guarantees.
A closer look at bank leverage.
Longevity is the wrong characteristic to reward in the case of government workers.
As the old song goes, after 16 tons of Keynesian economics, all we have to show for it is that we are deeper in debt.
Recourse mortgages with significant down payments will stabilize the housing market, prevent speculative bubbles from forming, and limit taxpayer risk.
November 6 was an electoral setback dealt to those of us who believe in capitalism and limited government. What can we learn from Churchill, who was no stranger to setbacks?
One would not be troubled by the 30-year fixed-rate mortgage if it were an emergent property of free markets. But it is not.
Is federal debt really nothing more than money ‘we owe to ourselves’? No. It frays the political fabric, and we are feeling its effects already.
If policymakers truly want to make things better for home buyers, they should look for ways to streamline and modernize the housing transaction itself.
Home ownership subsidies have imposed costs that are large and clear. The benefits of such subsidies are, at best, small and vague.
Here are three possible outcomes.
There are many horses in the educational technology race. Which ones are worth betting on?
What happens when there is no market for reliability.
Here’s an approach that accepts the reality of the Administrative State while restoring the principle of checks and balances.
Instead of regulating the boundaries between what is approved and what is forbidden, perhaps we should lay out broad but well-defined principles that businesses are expected to follow.
If we want to get along better and resolve differences more easily, it will take conscious effort to overcome tribal behavioral instincts.
The mainstream vs. the anti-modernists.
In order to have the rule of law, a society must have cultural institutions that promote rules and norms that cannot be overturned by autocrats.
We have accumulated more than six decades of macroeconomic experience since the end of World War II, yet neither stubborn Keynesians nor stubborn monetarists have encountered any data that would make them change their minds.