Allen Russell

Inflation and relative prices

Pierre Lemieux has a post explaining the fallacy of assuming that inflation is caused by changes in relative prices. An increase in the price of used cars cannot generate or “drive” inflation for a simple reason: it works the other way around. Inflation, which is […]

The Elementary Basics of Inflation

It is always surprising how even the financial press is confused about inflation. I am not speaking of complex conflicting theories on the causes of inflation but of the very basic distinction between inflation and changes in relative prices. For example, The Economist just wrote: […]

Signaling: The Play

My friend Jason Ford wrote this little play, inspired by The Case Against Education. Enjoy! Three Mercedes By Jason Ford (The Admissions Office at Foxmoor College in the Philadelphia Suburbs. Bart Amblin, the Head of Admissions, is seated at his desk.) BART (on phone) Send […]

David Henderson on the Essential UCLA School of Economics

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Boudreaux on Government’s Nature

Don Boudreaux writes: One general lesson that I draw from facts such as this one [the fact he’s referring to is that during the pandemic, the FDA actually used the Covid-19 emergency as a pretext to slow the approval of SARS-CoV-2 tests, rather than what […]

It’s not what you don’t know; it’s what you know that ain’t so

In a recent post, I listed a bunch of myths that we teach to our students. One of them was specifically applicable to the German population—the myth that hyperinflation put the Nazis in power. In fact, it was deflation (and unemployment) that transformed the Nazis […]

Wagner’s and Weitzman’s Bathtub Analogy

In a comment by Daniel Reeves on a recent post by my co-blogger Bryan Caplan, Reeves claims that I ignored the bathtub analogy in Gernot Wagner’s and Martin L. Wietzman’s Climate Shock in my review of the book. I didn’t mention it but I didn’t […]

“Just Read the Instructions”

Except perhaps for some psychopaths, everybody hopes that the four members of the Inspiration4 mission (watch a video) will safely return to earth. One remarkable thing is how, just a few years ago, most people would have not believed that a crew of civilians would […]

Average is over

A while back, Tyler Cowen wrote a book entitled “Average is Over“. If my memory is correct, one idea was that technology would allow some people to become much more productive than others, and/or technology would make it easier to identify who has been more […]