Do we have the capability to eliminate booms and busts in economic activity? The answer in my judgment is no, because there is no tool to change human nature. Too often people are prone to recurring bouts of optimism and pessimism.
January 12, 2015
The seemingly sudden collapse of commodity prices has made news in the press. Oil declined close to 50% in just a few weeks. The press claimed it was due to increased U.S. shale production and slowing global demand. While these two factors are valid, I believe, they are on the margin. What’s not on the margin: Americans...