Where’s The Magic Formula?

In Full Archive by Nathan Lewis

(This item originally appeared at Forbes.com on March 3, 2018.) https://www.forbes.com/sites/nathanlewis/2018/03/02/wheres-the-magic-formula/#3a4e6da97a01   For some time, I’ve argued that a lot of economic policymaking boils down to the Magic Formula, which is: Low Taxes and Stable Money. There is more to it than this, of …

David Glasner Cheers For Hawtrey and Cassel

In Full Archive by Nathan Lewis

Today, we are doing a little more work regarding the Interwar Period, which was a big focus over the past two years. Specifically, we will look at a 2013 paper, “Pre-Keynesian Monetary Theories of the Great Depression,” by Ronald Batchelder and David Glasner. You …

The Floating Pound and Dollar, 1790-1830

In Full Archive by Nathan Lewis

Here is a bit of new data, regarding the floating pound during the Napoleonic Wars 1793-1821, and also the floating dollar during the War of 1812, 1812-1819. The source of the data is here: http://www.centerforfinancialstability.org/hfs.ph The data here is somewhat intermittent, so I plotted …

“Rules-Based” Monetary Proposals Won’t Create Stable Money

In Full Archive by Nathan Lewis

(This item originally appeared at Forbes.com on February 9, 2018.) https://www.forbes.com/sites/nathanlewis/2018/02/09/rules-based-monetary-proposals-wont-create-stable-money/#4b822c96128e I often say that governments should follow the “Magic Formula,” which is: Low Taxes and Stable Money. Good things happen to governments that do this, and bad things happen to those that don’t. …

Bulgaria’s Journey To A 10% Corporate Tax Rate

In Full Archive by Nathan Lewis

(This item originally appeared at Forbes.com on January 26, 2018.) https://www.forbes.com/sites/nathanlewis/2018/01/26/bulgarias-journey-to-a-10-corporate-tax-rate/#12d34a185d50   The principle of the Laffer Curve is: you get more of what you tax less. An income tax taxes taxable income. As tax rates go down, taxable income goes up. There is …

How Much Should Homes Cost (To Rent)?

In Full Archive by Nathan Lewis

Previously, we looked into how much homes should cost. Basically, we concluded that the cost of homes should be a function of construction costs, which are basically stable, profit and some other non-construction costs such as corporate overhead, and land costs. Since there is …

T.R. Reid Explains Why Democrats Should Get On Board the Great Tax Reform Of 2018

In Full Archive by Nathan Lewis

(This item originally appeared at Forbes.com on January 4, 2018.) https://www.forbes.com/sites/nathanlewis/2018/01/04/t-r-reid-explains-why-democrats-should-get-on-board-the-great-tax-reform-of-2018/#24b65f3c1091 I knew the Washington Post reporter T. R. Reid from his book Ski Japan!, which I used to explore Japan’s major ski resorts twenty years ago. Thus, I am intrigued to see him …