Link Parade: 4.3.15

Bernanke started his blog right after I started mine. I think we can all assume he thought the internet was lopsided in favor of freedom and goodness and so climbed aboard the seesaw. Also, people are already cranking his posts through textual analysis machines and counting the number of times he says certain words, like “debt”.

In case you missed it, Dan Sanchez gave Google the ol’ one-two over the vs. AdSense controversy. For a 10-minute deluge of a summary, listen to the Scott Horton interview.

Discrimination and freedom of association are the buzz words this week. Make sure you see Ryan McMaken’s article and Tom Woods’s broadside attack.

The concept of marginal units slipped Robert Reich’s mind in a Facebook post on teachers’ pay. Robert P. Murphy calls BS on his far-fetched story and takes his economics to the cleaners.

Carmen Dorobăț helps The Economist see the bigger picture when it comes to international capital flows in a US dollar-dominated world:

When these global capital flows (foreign investments or cross-border bank loans alike) are triggered by productive differences in interest rates among countries, they result in a better allocation of resources, inter-temporally and geographically. Capital goes from where it’s plentiful to where it’s scarce, to producing those goods which best satisfy consumer preferences. Nonetheless, in today’s fiat money system, such flows of capital are spurred by artificial differences in interest rates, in both the US and emerging markets. This is the natural result of the credit expansion policies which lower interest rates below their unhampered market levels. Apparently plentiful capital flows out from the US only to be mailinvested in otherwise unprofitable production processes in emerging markets. Rather than a better allocation of resources, the current global situation amounts to misallocation writ large.

Finally, and on a brighter (darker?) note, I’d like to share my father’s recommendation for music this Good Friday and mine for Easter. It’s not a Newman holiday without a hint of sacrilege.



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