Philipp Bagus

In this article I explain the social function of credit default swaps. CDS are not weapons of mass destruction in spite of Warren Buffets words. They can be very constructive by putting limits on overindebted financial and government institutions. Credit default swaps can bring down irresponsible governments and overrisky financial institutions.

In this article I discuss the problem of excessive maturity mismatching. Can there be a business cycle with 100% reserves if banks mismatch loans? I argue: yes, if there exist government guarantees or a central bank.

ABCT: Are 100 percent reserves sufficient to prevent a business cycle?

Concerning the purchasing power of money, much emphasis has been put on the changes in money’s quantity. However, changes in the quality of money have been widely neglected. In this article published in the Quarterly Journal of Austrian Economics, (2009) 12 (4): 41-64, I analyze changes in the quality of money and their influence on the purchasing power of money. The article entails a critique of the quantity theory of money (its mainstream version).

Keywords:
Monetary policy, qualitative easing, quantitative easing, quality of money, critique quantity theory of money

In this article, I discuss the problem of sovereign debt. Especially in Europe, we might have crossed the point where the problem could be solved short of high inflation or default. I explain how the acute sovereign debt problem is the direct result of state interventions during the financial crisis itself caused by fractional reserve bank. A spanish version was published by Libertaddigital.

In this article I explain, that Greece is already being bailed out by the rest of the eurozone. As all memeber states can use the ECB to finance their deficits incentives are to run high deficits. A German version of this article was published in the Neue Züricher Zeitung. Stefan Molyneux interviewed me on the issue.

In this article, published in the Romanian Economic and Business Review, 2009, 4(3): 165-85, David Howden and I compare the qualitative easing and the quantitative easing of the Fed and the ECB during the financial crisis and the implications for the qualities of the respective currencies.

Qualitative easing has been very important in these policies.

In this article published in Review of Austrian Economics, 21 (4) 2008: 283-300, I discuss the connection between Austrian Business Cycle Theory and asset prices, especially asset price bubbles.

In this article published in Quarterly Journal of Austrian Economics 6 (4) 2003: 19-35, I examine the deflation theories of Ludwig von Mises, Murray N. Rothbard, Friedrich A. von Hayek, George Reisman, Jesús Huerta de Soto and Hans Sennholz.

In this article published in Procesos de Mercado: Revista Europea de Economía Política, 3 (1) 2006: 105-23, I examine five common erros about deflation. The common deflation phobia results from these five errors.

In this article I describe the dilemma the Federal Reserve is currently facing. It cannot undo its quantitative and qualitative easing without endangering the break down of the system.