Friday , September 17 2021
Home / Mihai Macovei

Mihai Macovei



Articles by Mihai Macovei

The Case Against the New “Secular Stagnation Hypothesis”

August 11, 2021

Abstract: The new “secular stagnation hypothesis” developed by Lawrence H. Summers attempts to justify why the demand stimulus applied in the aftermath of the global financial crisis failed to revive growth in a satisfactory manner. Building on previous ideas of Keynes, Hansen, and Bernanke, Summers claims that excess savings together with feeble investment drove the …

Read More »

Forced Vaccinations in France Bring Both Repression and Protest

August 7, 2021

Macron says vaccines are not compulsory for the general public for now, but they are essentially required for anyone who wants to live a normal life. Original Article: “Forced Vaccinations in France Bring Both Repression and Protest” This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.

Read More »

If the US Wants to Beat China, Why Is It Copying China’s Socialism?

July 29, 2021

If the US wants to strengthen its economic and geostrategic position versus China, it needs to apply the same free market principles that made it prosperous and powerful in the first place.  Original Article: “If the US Wants to Beat China, Why Is It Copying China’s Socialism?” This Audio Mises Wire is generously sponsored by …

Read More »

Forced Vaccinations in France Bring Both Repression and Protest

July 22, 2021

In a speech to the nation just ahead of Bastille Day on July 14 celebrating the French Revolution, President Emmanuel Macron delivered a paradoxical blow to the Republic’s famous slogan: Liberté, égalité, fraternité. He announced a series of measures to speed up the pace of covid-19 vaccinations which undermine individual liberties and threaten a strong …

Read More »

If the US Wants to Beat China, Why Is It Copying China’s Socialism?

July 12, 2021

Under the Biden administration the US continued escalating the economic and geopolitical frictions with China. At the recent G7 Summit in Carbis Bay, President Biden sought to rally a “united front” against China with traditional G7 allies and new ones such as Australia, India, South Korea, and South Africa and rebuked China on economic policies, …

Read More »

Thanks to Federal Megaspending, the Trade Deficit Has Only Gotten Worse

July 9, 2021

The chronic US trade deficit is a direct result of the dollar’s status as the world’s main reserve currency and unabated monetary increases in government spending. More tariffs won’t change that.  Original Article: “Thanks to Federal Megaspending, the Trade Deficit Has Only Gotten Worse” This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated …

Read More »

Thanks to Federal Megaspending, the Trade Deficit Has Only Gotten Worse

June 16, 2021

President Trump’s protectionist trade measures against China and other external partners have not caused a reduction of the total US trade deficit. The latter actually grew further as China’s exports found indirect ways into the US and massive domestic spending schemes were expanded during the pandemic. Almost three years after the Trump administration unleashed the trade war …

Read More »

Monetary and Fiscal “Stimulus” Is Undermining the Global Recovery

May 22, 2021

Expansionary monetary and fiscal policies have gone into overdrive all over the world since the beginning of the pandemic. This raises the obvious question of how long they can last before another crash follows. In its latest World Economic Outlook, from April 2021, the International Monetary Fund (IMF) is also concerned about rising macroeconomic vulnerabilities, noting …

Read More »

Lockdowns Are More Economically Devastating Than Voluntary Social Distancing

April 6, 2021

Lockdowns advocates claim fear of the virus is really what kept people home—and has thus led to the economic destruction of the past year. But they also claim that without forced lockdowns, people will quickly go back to normal. Both can’t be true.  Original Article: “Lockdowns Are More Economically Devastating Than Voluntary Social Distancing” This …

Read More »

Lockdowns Are More Economically Devastating Than Voluntary Social Distancing

March 29, 2021

Once again, several European countries have extended and tightened lockdowns, despite the continent having been under recurrent strict confinement measures since the beginning of the pandemic. The population watched in disbelief how new restrictions were added to the already heavily curtailed access to restaurants, bars, cultural gatherings, sport events and international travel. The authorities are …

Read More »

Capital and Labor Both Suffer under Minimum Wage Mandates

March 13, 2021

Rising unemployment is just one outcome of minimum wage mandates. Capital accumulation and labor productivity will also be hurt.  Original Article: “Capital and Labor Both Suffer under Minimum Wage Mandates” This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.  

Read More »

Capital and Labor Both Suffer under Minimum Wage Mandates

March 8, 2021

President Biden and the Democratic Party have pushed hard to more than double the national minimum wage from $7.25 per hour to $15 per hour over the next four years. This aggressive intervention in the functioning of labor markets has been heavily criticized, including in two recent Mises Wire articles. Resorting to both theoretical arguments …

Read More »

China Needs More Economic Freedom—Not a Bigger Welfare State

February 23, 2021

Mainstream economists claim China needs more consumption and a bigger welfare state. They think China’s high savings rate is a bad thing. These economists are wrong.  Original Article: “China Needs More Economic Freedom—Not a Bigger Welfare State” This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.  

Read More »

China Needs More Economic Freedom—Not a Bigger Welfare State

February 18, 2021

China has not been spared heavy criticism about its growth mode since it joined the World Trade Organization (WTO) in 2001. Leading the choir of discontent, the International Monetary Fund (IMF) claimed that “high savings are at the heart of China’s external and internal imbalances.” Other mainstream pundits also believe that China’s mercantilist policy was …

Read More »

There Are No Winners in the US-China “Tech War”

July 28, 2020

After unleashing a disruptive trade conflict with China, the Trump administration has also escalated the lingering “cold tech war” between the two rival powers. Over the last two years, the US has passed new rules limiting China’s investments in the US, restricting bilateral information and communications technology (ICT) trade and controlling exports of sensitive and emerging technology …

Read More »

Facing Economic Disaster, France Turns against Globalism

May 5, 2020

Listen to the Audio Mises Wire version of this article. Since mid-March, the French people have been coping with one of the strictest lockdowns in Europe. Large gatherings have been banned, and schools, bars, restaurants, and all shops (except for grocery stores) have been closed. Only “essential” trips outside home are allowed, and most businesses …

Read More »

Facing Economic Disaster, France Turns against Globalism

May 5, 2020

France faces a future of spiraling debt and declining economic growth. So Emmanuel Macron has now embraced economic nationalism as a way out. It’s not likely to work. This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros. Original Article: “Facing Economic Disaster, France Turns against Globalism”

Read More »

While the West Panicked, Some Asian Regimes Took a Different Path

April 9, 2020

More and more voices are questioning the rationale for the general lockdown imposed in most of Europe and the US in response to the coronavirus epidemic. Such unprecedented suppression of civil and economic liberties during peace continue to strike many as hardly justified. Whether from a legal, ethical, or economic standpoint, we may soon find that …

Read More »

Japan’s Productivity Has Been Slashed By Government Meddling, Not Demographics

April 3, 2020

Mainstream economists have turned Japan’s adverse demographics into a scapegoat for its economic debacle. Be it the Financial Times or the IMF, the general narrative is that Japan’s shrinking and rapidly aging population has stifled both economic growth and productivity. Allegedly, in a fast-aging society such as Japan’s individuals increase savings for retirement and curtail consumption, while companies …

Read More »

South Korea’s Neo-Mercantilist Growth Engine Has Stalled

February 4, 2020

Capital accumulation and productivity growth are the outcome of free market investment and not of government spending. This is well known to Austrian school economists. Rothbard1 argued that only the free market can ensure an efficient allocation of factors of production whereas government sponsored investment is “either malinvestment or not investment at all, but simply …

Read More »

China’s Mercantilism Is a Recipe for Stagnation

December 4, 2019

Over the past two decades, fears about China’s rapid economic and technological advancement have grown exponentially and culminated in the recent trade war unleashed by President Trump. But only supporters of government intervention could think of China’s market socialism as a redoubtable challenger to a market-oriented economy. But that’s not how it works. Murray Rothbard, …

Read More »

Stimulus Brings Stagnation: The Case of Japan

October 17, 2019

Efforts to stimulate growth end up hampering growth. The Austrian Theory of the Business Cycle (ATBC), pioneered by Ludwig von Mises, explains this seeming paradox. Government reduction of interest rates below the would-be market rate triggers an expansion of fiduciary credit in the context of fiat currency and fractional-reserve banking. It leads to a boom …

Read More »

Why Tariffs Won’t Create Jobs or Help the Auto Industry

December 6, 2018

At a mid-November hearing before the United States International Trade Commission, several U.S. automaker groups complained that proposed car tariffs would undermine the success of the U.S.-Mexico-Canada Agreement (USMCA) and cause heavy job losses for the car sector.1 The main U.S. car-producer association — the US Alliance of Automobile Manufacturers disapproved2 of (i) the rules …

Read More »

The Swiss Franc and The Euro: What Now?

January 9, 2018

In January 2015, the Swiss National Bank (SNB) unexpectedly removed the de facto peg of the franc to the euro.1 The move was welcomed by free-market economists, including in contributions on Mises Wire2. It was deemed that the short-run adjustments to the Swiss economy triggered by the appreciation of the franc were preferable to the macro-economic stability risks posed by the inflation imported from the euro area during the peg. Yet, it would have been difficult to anticipate that the SNB’s interventionist monetary policy would continue aggressively also after the peg.Let’s give some background. Since the onset of the Great Recession, investors flocked into the Swiss franc as a safe haven asset. They feared that ultra-loose monetary and fiscal policies would damage

Read More »