Economic Synthesis Blog

Towards real economic analysis

Understanding Hyperinflation — September 9, 2017

Understanding Hyperinflation

Hyperinflation, it’s something that people like myself always get accused of not understanding given I advocate money creation [1] to finance government expenditure in the economy. The mainstream story (mainstream among the general public and economists who don’t study this particular topic) goes like this:

“Historically, governments that have tried to print money to finance expenditure have created hyperinflation and caused an economic depression due to the fact that the Quantity Theory of Money (represented by the equation of exchange: MV = PY), which is true by identity, tells us that an increase in the money supply, M, leads to an increase in the general price level, P. Therefore the government should never try to print money to finance expenditure.” Continue reading

Thoughts on Healthcare — August 5, 2017

Thoughts on Healthcare

Recently I have been interested in the healthcare debate that has been going on in many developed nations, but specifically the United States. As most people probably know, the United States is the only developed nation in the world without some kind of state run/controlled healthcare system (Greenberg, 2015), despite the U.S. paying a substantially larger sum of money for its system (WorldBank, 2014). Obviously the degree to which state control is in place varies country by country, but you get my point being that most other countries are able to do something the majority support; [1] that being a single payer healthcare system or just a more state run system. Now I personally have not developed my opinion fully on this issue, hence why I’m looking into it and just plan on going over my understanding of the debate and offering some possible policy suggestions. Continue reading

Expanding on the Social Market Economy — August 1, 2017

Expanding on the Social Market Economy

Recently I came across a paper by Dr. Ralph M. Wrobel where he discussed the work of German economist Walter Eucken (1952) surrounding the ordoliberal idea of a social market economy. I really enjoyed the paper as it appealed to a lot of ideas that I’ve been having recently about what society should look like, and I finally decided to write this post because I’ve been endlessly bombarded with questions surrounding what my political ideology is, what my economic ideology is, what system I advocate, etc. etc. and so in this post really only the last question will be answered as I really like the social market approach, but have some proposals to make it better. First, let’s outline exactly what the social market economy is by walking through Wrobel’s paper which explained the system in light of the 2008 financial crash. Continue reading

Labor Market Institutions and the Minimum Wage — July 17, 2017

Labor Market Institutions and the Minimum Wage

I wanted my first post to be regarding two main topics which I believe are somewhat small, but have very large implications on a macroeconomic scale, and those are: the minimum wage and in general labor market restrictions.

Now, starting with the minimum wage, it is a very controversial topic in both political and economic spheres given how radically different, people think about the topic. However, the second you step out of academic circles and start asking ordinary people what their thoughts are, it becomes clear that the minimum wage is a very popular idea: Continue reading