Tuesday, August 21, 2012

Economic Bloggers and Nominal Rates of Return in the US

I had the opportunity to ask major economic bloggers (in the latest Econ Blog Survey) about their long-term expectations regarding nominal rates of return for low-risk assets in the US. Below you'll find a summary of their answers.

It's interesting to notice that a large majority of the bloggers do not think that we'll see, at least in the short term, a reenactment of the historical pattern observed since the creation of central banks, that is, they usually increase short-term interest rates (and by arbitrage nominal rates of return for low-risk assets) fast and frequently after losing control of inflation rates.

Wednesday, August 15, 2012

Caplan on Bastiat's Differential Ideological Appeal

Caplan writes an excellent post about the tendency of many intellectuals to minimize the fundamental contributions to economics of Frédéric Bastiat:
This is the real root of Bastiat's differential ideological appeal. Friends of the free market love him because Bastiat destroys the inane arguments that make the modern welfare state popular. Once you deprive the median voter of these inane arguments, friends of the modern welfare state have to resort to intellectually serious arguments to make their case. Alas, these arguments are utterly beyond the median voter's comprehension. Most college students can't even grasp them.