Wednesday round up: Domitrovic on Eichengreen; Boudreaux on mercantilism; Steil on deflation.

From Forbes, Brian Domitrovic responds to Barry Eichengreen’s latest anti-gold standard remarks.

At Café Hayek, Don Boudreaux notes the mercantilist roots of an Obama Administration trade policy.

In The WSJ, Stephen Moore reports Kansas’ progress towards a tax cut.

On The Kudlow Report, Benn Steil discusses whether the rising dollar, falling gold and weakening stock market suggest deflation:



At Parcbench, Scott Gillette advocates for a return to the gold standard.

From Free Banking, Steve Horowitz rebuts Paul Krugman’s history of Gilded Age banking.

In The WSJ, Stephen Moore notes the debate over tax cuts among Oklahoma Republicans.

From First Trust, Brian Wesbury suggests government not banks need a stress test.

Monday summary: Benko on congressional sound money legislation; Tamny on GDP; Wenzel on the Fed's tight money error of summer 2008.

From Forbes, Ralph Benko reports congressional sound money legislation.

At RCM, Louis Woodhill explains the terrible employment data.

In Forbes, John Tamny analyzes the problem of reliance on GDP.

On The Kudlow Report, Benn Steil discusses the eurozone crisis:



At The WSJ, James Bovard highlights efforts to create a happiness index to replace weak GDP statistics.

From PJ Media, David Goldman explains declining labor force participation.

On RCM, Keynesian Paul Samuelson sides with Ben Bernanke over Paul Krugman on inflation.

At RCM, Bill Frezza notes the negative economic consequences of restrictive immigration policy.

The Mises Institute features Robert Wenzel’s NY Fed speech, in which he cites his warning of the dramatic monetary tightening of summer 2008:

After growing at near double digit rates for months, money growth has slowed dramatically. Annualized money growth over the last 3 months is only 5.2 percent. Over the last two months, there has been zero growth in the M2NSA money measure.

This is something that must be watched carefully. If such a dramatic slowdown continues, a severe recession is inevitable.

We have never seen such a dramatic change in money supply growth from a double digit climb to 5 percent growth. Does Bernanke have any clue as to what the hell he is doing?

The WSJ suggests the new French president follow German chancellor Gerhard Schroder’s example.

At The NYT, Paul Krugman advocates breaking up the euro.

In The WSJ, Jon Huntsman notes the Chinese government’s profound economic insecurity.

Thursday round up: Ryan on tax competitiveness; Baum on inflation; Moore on the Buffett Rule.

The NY Post excerpts US Rep. Paul Ryan’s (WI) speech on tax competitiveness to the GW Bush Institute.

In The WSJ, Dan Henninger reports the Left’s attack on Ryan’s budget.

On The Kudlow Report, Steve Forbes discusses the economy:



At Bloomberg, Caroline Baum opposes calls for higher inflation.

From The Council on Foreign Relations, Benn Steil critiques the Volcker Rule.

Reuters reports on China economic and currency liberalization initiatives.

On C-SPAN, Stephen Moore discusses plans to raise tax rates:



From Heritage, John Stossel discusses media opposition to free market ideas.

Monday round up: Benko on the Sound Dollar Act; Malpass on pro-growth reforms; Kudlow on the strengthening dollar.

At Forbes, Ralph Benko notes liberal opposition to US Rep. Kevin Brady’s Sound Dollar Act.

The editors of e21 analyze the tax contribution of the top 1% of earners.

At Forbes, David Malpass proposes a stronger dollar and tax reform to rev up growth.

On The Kudlow Report, Malpass discusses the unemployment report and the Fed:



From NRO, Larry Kudlow shrugs at the weak employment report.

At RCM, Louis Woodhill highlights the recent poor employment report.

On NRO, Kudlow links Ben Bernanke’s backing off QE3 to declining commodities.

In The Telegraph, Ambrose Evans Pritchard examines gold’s recent decline.

From Project Syndicate, Daniel Gros compares dollar and euro easing.

In The WSJ, Kevin Warsh argues households deserve credit for the improving economy.

Also in The WSJ, Stephen Moore highlights Gov. Bill Haslam of Tennessee.

On The Kudlow Report, Dan Mitchell debates the Bush tax cuts’ expiration:



In The NYT, Benn Steil remembers the spy scandal that gave the US leadership of the World Bank rather than the IMF.

The CSM reports illegal immigration drying up in response to the weak economy.

Wednesday round up: Hubbard outlines Romney's new tax plan; Holtz-Eakin critiques the President's corporate tax plan; Domitrovic notes the CEA's rosy scenario.

At NRO, Larry Kudlow reports Mitt Romney will propose a bolder tax cut plan.

On The Kudlow Report, Glenn Hubbard discusses the Romney tax plan, including “cutting the corporate tax to 25%; eliminating the added tax burden on firms to bring overseas profits home; eliminating the corporate AMT and making the R&D credit permanent. On the individual side, a 20% cut across the board in marginal tax rates; eliminate the alternative minimum tax as well.”



At NRO, Doug Holtz-Eakin finds problems with the President’s proposal to cut the corporate tax rates.

From Forbes, Brian Domitrovic notes the rosy economic growth assumptions underlying the President’s budget.

The WSJ critiques the President’s plan to triple the tax on dividends.

In The WSJ, Benn Steil notes the Fed’s poor record of forecasting inflation.

From Alhambra Partners, Joe Calhoun worries inflation will undermine the recovery.

At First Trust, Brian Wesbury suggests stocks are still cheap.

From Newt.org, Newt Gingrich provides an interesting analysis of the US energy potential, but omits the dollar from his analysis:



On NRO, Reihan Salam examines declining labor force participation.

At The NY Sun, Ira Stoll reviews Allan Meltzer’s new book defending capitalism.

In The WSJ, Austan Goolsbee notes some of America’s uncounted trade surplus items.

Tuesday round up: Klein compares Obama and Romney tax plans; Kudlow and Forbes on the President's budget; Melloan on the gold standard.

In The Washington Post, Ezra Klein compares tax rates under Obama vs. Romney. One smart observer writes, “Obama got to the right of Romney for the first 60 percent of income levels. Brilliant. And again shows how Romney's timidity and weakness on taxes is provocative.”



The Daily Beast reports anti-tax advocate Grover Norquist arguing that Mitt Romney is acceptable because he will sign conservative legislation.

In Forbes, Ralph Benko likens US Rep. Ron Paul (TX) to Thomas Jefferson.

From First Trust, Brian Wesbury argues the economic recovery is real.

At NRO, Larry Kudlow highlights the many tax increases in the President’s budget proposal.

On The Kudlow Report, Steve Forbes discusses the President’s tax plan:



In The American Spectator, George Melloan advocates the gold standard.

At United Liberty, Jeremy Kolassa assesses CPAC’s gold standard panel.

In The Economist, a confused columnist suggests gold is too volatile to serve as a monetary standard.

The NYT quizzically reports the rise of interest in gold-linked currency.

From US Rep. Walter Jones (NC), a chart on assets held by the US Federal Reserve:

At Salon, David Wolman cites Benn Steil making Robert Mundell’s case for a single world currency.

At RCM, John Tamny explains that on housing, the prudent bailout out the imprudent.

The WSJ roots Greece’s problems in its failure to go for economic growth.

On Kudlow, US Rep. Paul Ryan (WI) offers the Republican alternative to the President’s budget:




From Politico, Scott Paul of the Alliance for American Manufacturing calls for tough action to force China to appreciate its currency (as the US did to Japan in the late 1980s, resulting in long-term deflation and stagnation).

In The NYT, Bruce Bartlett analyzes income’s definition in tax policy.

Weekend edition: Mundell on global currency; Williams and Moore on benefits for the rich; Woodhill on the unemployment report.

Thailand’s The Nation reports supply-side guru Robert Mundell arguing for a global currency.

In Forbes, Louis Woodhill debunks optimism about the latest unemployment report.

In The WSJ, Walter Williams and Stephen Moore argue for cutting government benefits to the rich, rather than raising taxes:

The much bigger fiscal drain from the wealthy is on the federal expenditure side of the budget ledger: tens of billions each year in grants, loans, subsidies, guarantees and benefits pocketed each year by wealthy Americans as individuals and firms. Any campaign to downsize big government will only succeed if the needed deep cuts in spending are deemed by voters as equitable. In an era of $1 trillion-plus deficits and a $15 trillion national debt, we would like to think that a national consensus could be reached to eliminate handouts to individuals and companies with net incomes above $1 million.

On The Kudlow Report, Stephen Moore discusses the NLRB’s decision to drop its case against Boeing:

 

At America Now with Andy Dean, Cato’s Alan Reynolds discusses his recent WSJ op-ed on the top 1%.

From The Atlas Sound Money Project, Nicolas Cachanosky defends the gold standard.

At The Council on Foreign Relations, Benn Steil refutes Brad Delong’s claim that the ECB will print its way out of the EU’s debt crisis.

On Activist Post, David Redick proposes gold to save the euro (h/t: Ralph Benko).

In Forbes, Ken Rapoza quotes Bretton Woods Research’s Vlad Signorelli on China’s lower inflation and economic weakness.

The WSJ notes the weakening yuan.

On Fox Business, Steve Forbes discusses the European crisis and bailout possibilities:



The WSJ argues Europe won’t restore growth with higher tax rates.

At Cato Unbound, a monetarist, Keynesian, and an Austrian debate whether the economy is caught in a liquidity trap.

Wednesday update: Mundell calls for a US/EU common currency; Chapman on gold; Huntsman wants sound money.

Klassa (Bulgaria) reports Robert Mundell advocating a common currency between the US and EU.

On Coffee and Markets, Brian Domitrovic discusses his Laffer Center paper on the Federal Reserve’s financing of the federal debt.

At The Freeman, John Chapman and John Allison argue for a return to gold-linked money.

On The Kudlow Report, Dan Mitchell discusses a US bailout of Europe:

 

On his website, Jon Huntsman advocates sound money:

Jon Huntsman supports a strong and stable dollar. As president, he will appoint Federal Reserve Board Governors and a Chairman who believe in sound money. The United States cannot devalue our way to prosperity and efforts to do so risk a “beggar thy neighbor” round of devaluations, which will ultimately harm American exporters and risk the dollar’s privileged position as the primary global reserve currency.

On NRO, Larry Kudlow doubts the Fed’s cheapening of dollars to Europe will change anything.

From Cato, Steve Hanke suggests Europe is suffering from monetary contraction.

At The WSJ, George Melloan notes Europe’s move toward fiscal consolidation:

The possible direction of the negotiations was tipped by a leaked German memo proposing a "European Monetary Fund" that would be the core of a "stability union" paving the way for "political union." As a quid pro quo for financial aid, this fund would demand policy reforms in distressed nations to facilitate a work-off of excessive debt. Ms. Merkel, French President Nicolas Sarkozy and the new Italian premier, Mario Monti, are promising that a plan for closer economic and political integration will be submitted at the Dec. 9 European Union summit. If approved, this could be a very big deal.

From The Council on Foreign Relations, Benn Steil explains the ECB is restrained, unlike the US Fed, because it lacks the backing of a national treasury.

Cato’s recent monetary conference is now online (panel 1; panel 2; panel 3; panel 4; closing remarks):



At Forbes, Jim Powell recounts the history of debt and devaluation among wealthy nations.

From Bloomberg, National Review’s Ramesh Ponnuru argues the Fed should adopt Nominal Gross Domestic Product.

Wednesday round up: Melloan on the Fed; Woodhill on the GOP Medicare plan; Kudlow on QE3.

From The WSJ, George Melloan explains the Federal Reserve can’t handle higher interest rates:

But the Fed is running a big interest-rate risk. Over the past few years, the Fed has borrowed about $1 trillion in excess reserves from member banks. The banks can call in those loans to the Fed on demand, which is about as short-term as you can get. Should the economy pick up and banks need that money to make private loans, the Fed would have to offer a higher rate to try to hold those reserves. But when interest rates go up, the value of bonds goes down—and so too would the market value of the Fed's $2 trillion-plus portfolio of Treasurys and mortgage-backed securities.

Writing in Forbes.com on May 6, William F. Ford (a former Atlanta Fed president) and Walker F. Todd (who did stints with both the Cleveland and New York Feds as a lawyer and economist) note that a one percentage point rise in long-term interest rates would lower the market value of the Fed's current bond portfolio by $100 billion. That would more than wipe out the $81.7 billion in earnings the Fed reported for 2010.

In Forbes, Louis Woodhill advises Republicans to reconsider their Medicare proposal and focus on growth.

At NRO, Larry Kudlow opposes a new round of quantitative easing.

On The Kudlow Report, David Goldman discusses the likelihood of QE3 in response to the softening economy:




Reuters reports 150 economists, including supply-side guru Robert Mundell, support Republican efforts to cut spending.

From Reason, Jerry Brito discusses a new attempt at private money.

IBD notes the weak economic recovery.

In The WSJ, David Malpass proposes an alternative strategy to bring down spending:

The way to do it is legislation linking debt or spending to GDP and forcing the government to cut spending when it exceeds a set ratio. For example, if the debt-to-GDP ratio is over 65% in fiscal years 2012-2014 (as it surely will be), or over 60% in 2015-2018, or over 50% thereafter, the president could be required to submit budgets that are no greater than the previous year's nominal spending.

At NRO, Cato’s Michael Tanner suggests the GOP presidential candidates haven’t proposed enough spending cuts.

From COAL, Paul Krugman pushes back on Benn Steil and Manuel Hinds.

On the John Batchelor Show, I discuss Robert Mundell’s euro/dollar argument.

Tuesday round up: Steil and Hinds on the dollar; Domitrovic on the IMF; McKinnon sees stagflation.

From The Financial Times, Benn Steil and Manuel Hinds explain that the dollar’s reserve status is bad for the world and for the U.S.

At Forbes, Brian Domitrovic suggests the IMF has little purpose without fixed exchange rates.

In The WSJ, Stanford’s Ronald McKinnon sees stagflation in the economy.

Not having an exchange-rate constraint, the Fed can conduct a more independent monetary policy than other central banks can. How it chooses to exercise this independence is crucial to the stability of the international monetary system as a whole. For more than two years, the Fed has chosen to keep short-term interest rates on dollar assets close to zero and—over the past year—applied downward pressure on long rates through the so-called quantitative easing measures to increase purchases of Treasury bonds. The result has been a flood of hot money (i.e., volatile financial flows that are subject to reversals) from the New York financial markets into emerging markets on the dollar's periphery—particularly in Asia and Latin America, where natural rates of interest are much higher.

Wanting to avoid sharp appreciations of their currencies and losses in international competitiveness, many Asian and Latin American central banks intervened to buy dollars with domestic base monies and lost monetary control. This caused a surge in consumer price index (CPI) inflation of more than 5% in major emerging markets such as China, Brazil and Indonesia, with the dollar prices of primary commodities rising more than 40% world-wide over the past year. So the proximate cause of the rise in U.S. prices is inflation in emerging markets, but its true origin is in Washington.

In India’s Free Press Journal, S.S. Tarapore discusses the gold standard and that nation’s economy.

In The Washington Times, Richard Rahn reports on a destructive banking regulation that would require U.S. banks to report the names of foreign account holders to their home governments.

From Alhambra Investments, Joe Calhoun suggests Fed Chairman Bernanke has turned the U.S. into a nation of speculators – again.

At CNBC, supply-side foe Peter Peterson talks about the need for higher taxes to fight the debt, but doesn’t mention growth:

Bloomberg notes Grover Norquist’s clout in opposing tax increases as part of a budget deal.

The Washington Post reports Paul Volcker saying that we need tax reforms that raise more than 19 percent of GDP.

Cato’s Steve Hanke challenges Keynesian claims about deficits and growth.

The Washington Post explains how Chinese manufacturers evade U.S. tariffs.

On Forbes, Ralph Benko sees politics behind a recent IRS rules change to tax donations to 501(c)(4) organizations.

Chris Powell of GATA comments on our WSJ article on Mundell.

At Asia Times, David Goldman disagrees with some elements of Mundell’s analysis.

The National Foundation For American Policy reports that children of immigrants drive U.S. achievements in science and math.

In The NYT, Bruce Bartlett critiques the Fair Tax.

Monday round up.

On NRO, Larry Kudlow counters Charles Krauthammer on the tax cut deal.

Rush Limbaugh notes the attacks on supply-side economics.

At The Kudlow Report, Larry discusses Fed policy:




On Forbes, John Tamny profiles the producer of the forthcoming Atlas Shrugged film.

At New World Economics, Nathan Lewis analyzes government spending.

In i view magazine, Ermira Kamberi examines Robert Mundell’s call for a global currency.

On MSNBC, Joe Scarborough sees the tax agreement as a victory for “Jack Kemp style supply-side economics,” but bemoans the deficit.

At The WSJ, Stephen Moore reports some conservatives may oppose the tax deal over higher estate tax rates.

On RCM, Benn Steil explains how floating currencies create bubbles and break down the global economy.

Consider first how the United States and China would interact under a classical gold standard. If the United States sent a dollar to China, China would have to redeem that dollar for American gold. A fall in the U.S. gold stock would necessitate a rise in U.S. interest rates, which would reduce credit growth, reduce prices, and reduce the trade deficit. This is the mechanism by which the gold standard automatically corrected global imbalances.

Compare this with today's actual monetary structure. When the United States sends a dollar to China, China immediately returns it in the form of a low-interest-rate loan. That dollar is then recycled through the U.S. financial system, causing further credit growth and, critically, no countervailing Federal Reserve action.

The bubbles and imbalances that have marked the past decade-as they did the 1920s-are features of a monetary regime which operates in precisely the opposite fashion as the one which operated during the great globalization of the late nineteenth century. America is not, as Fed chairman Ben Bernanke would have it, a passive victim of "a global savings glut." It should not, therefore, be surprising that bubbles will continue to emerge in one asset market after another, and will continue to burst with damaging consequences.

From Cato, Greg Mills suggests that Africa is poor because its economies are illiberal.

On Bloomberg, Kevin Hassett argues Ireland should be allowed to default.

AEI’s resident floating currency advocate says – surprise! – the euro in its present form is doomed, because it restricts nations from devaluing their currencies and therefore defaulting on their debt.

In The Washington Times, Patrice Hill reports on economists who say the US-China current account deficit costs America jobs.

From earlier this year, on the Freeman, David Henderson explains trade deficits are irrelevant.

Thursday round up.

At his blog, historian Brian Domitrovic offers a great explanation of how floating currencies caused Japan's Lost Decade, and today threatens China.

Cato's Dan Mitchell responds to Ezra Klein's recent discussion of the Laffer Curve.

On The Kudlow Report, U.S. Rep. Barney Frank supports ending Fannie Mae and Freddie Mac.

David Frum's website interviews Art Laffer regarding tax increases for the rich.

Art Laffer disputes the President’s view that Social Security does not face a crisis.

In The WSJ, the Council on Foreign Relation's Benn Steil and Paul Swartz suggest current monetary tactics will force the Federal Reserve to float interest rates (full text here).

From the archive, Jude Wanniski advocates the Fed float interest rates in favor of a dollar price rule versus gold.

Robert Reich opposes Mitt Romney's supply-side proposals, saying low demand is the problem.

Swiss America Trading’s CEO explains why businesses and investors are sitting on their money.

Say what you will about Reich’s economics, he does have a good sense of humor:

At AEI's The American, Mark J. Perry explains why trade deficit statistics are unreliable.

At Cafe Hayek, Don Boudreaux rebuts The NYT's claim that a rising trade deficit is harmful.