In economics, a monetary policy in which the value of the local currency is determined by the foreign exchange markets, with some intervention by the government (or its allies) in the event of excessive or dangerous movements.
Usually the term is applied when the country ignores long term shifts in value, but intervenes directly to avoid crises.
Most of the nations in the world have neither a hard peg
nor floating currency
, but something in between--a dirty float, in which trade is under some restrictions.
Organization founded in 1943 by Lewis H. Brown (the asbestos tycoon).
(Brown's company, Johns-Manville, was the largest asbestos manufacturer in the US during the 1930s, and was involved in a massive, 40-year cover-up of the severe health risks posed by asbestos.)
The American Enterprise Association (AEA) was created to design and promote policies that strengthen the political power of large corporations. In 1970, William Baroody, Sr. became its head and changed the name from "Association" to "Institute" (AEI); he had earlier learned how to (a) launder oversized campaign contributions from corporate boards, and (b) how to present the AEI as an earnest, high-minded, non-partisan research group (or "thinktank
"). Baroody's sons, William Jr. and Michael, both became important Conservative Movement
The AEI was, until the 1990's, mainly a very well-heeled devil's advocate against any progressive cause: it opposed regulating cigarettes, municipal water systems, environmental protections of all kinds, and the Endangered Species Act. Its budget grew enormously and it spawned subsidiary organizations such as NGOWatch
, the Center for Strategic and International Studies
, the Project f...
title of book by John Maynard Keynes (1883-1946) outlining the general concept of Keynesian
economics. The book was published in 1936.
Prior to the Great Depression
, opinions about how to properly manage the economy were dominated by Neoclassical economics
, which advocated little government intervention. In particular, unemployment was regarded as the consequence of workers failing to accept wages sufficiently low to permit full employment.
During the Great Depression, unemployment soared to 25% in the USA and Germany. Economics had no advice to give to leaders anxious to do something, and none of the neoclassical predictions were coming true. The government of the UK commissioned J.M. Keynes to lead a commission of top British economists in a general review of economic theory; their finding were summarized by Keynes in *The General Theory*.
The Cambridge team did not have access to statistics of national income and product accounting
(NIPA). They did have some data on unemployment and prices, especially from the USA.
Keynes also identified several inherent logical problems with neoclassical econo...
A currency whose value is set by the currency markets; money whose exchange rate relative to other currencies is determined mainly or entirely by unrestricted trading in the currency. Most currencies are dirty float|dirty floats
, which means that the government issuing them attempts to manage their traded value in some way; or else hard peg|hard pegs
, in which the value is tied to something specific.
When a currency is floating, then its value may rise because the county is running a trade surplus, or it is running a capital account surplus. Floating currencies are not fiat money
, although they are often confused for each other.
For most of the last half century, most money used around the world has been floating currency.
a number that is the sum of the unemployment rate and the inflation rate. It reflects the overall caliber of a country's prior economic management.
The term was coined by Arthur Okun and was inspired by the Phillips Curve
During the 1980's and '90's, Austria had the lowest misery index in the world. Unemployment rates AND inflation rates were almost nil.
Latin, "where is the benefit?" A type of logical fallacy in which one claims one didn't do something bad because it was not in one's interests to do so. An example would be, "Why would I steal from the cash register? It's going to hurt the business if I do, and then I might lose my job."
The argument is usually used on behalf of someone else: for example, Ludo Martens (1995) argues that Stalin could not possibly have massacred millions of Russians because he needed them to fight WW2; Fogel & Engermann claimed* that American slavery was not very bad because it was in the best interests of slaveowners to have content slaves.
The argument is a fallacy because it assumes that all relevant motives of the actor are well-established, and lead away from the act. It does not account for motives like personal hatred, shame, fear, spite, ideology, and so on.
* In *Time on the Cross* (1971); the book was conclusively debunked by David & Stampp, *Reckoning with Slavery* (1976).
One frequently encounters *quis est beneficium?* arguments among Holocaust deniers of all stripes. Among such worthies it is claimed that Hitler/Stalin/Enver Pasha could not possibly have wanted to massacre all those millions because it was a nuisance to try.
The belief efforts to protect people from calamity will only lead to them being more careless, and bringing on more calamity.
This is a fallacy because it (a) assumes people can adjust personal risk to replicate an incomparable situation, and (b) it confusing risk-taking and risky behavior. "Risk-taking" is a neutral term that includes anything that increases risk in some way, such as operating a machine at a higher speed. This usually is done to get some other benefit. "Risky behavior" is foolish, feckless, or sloppy behavior that has no intrinsic utility to the person engaging in it.
An example of the curmudgeon's fallacy is the erroneous claim that safer cars make for careless drivers.