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Podcast episode

EP89 – CPI inflation concerns with Darren Brady Nelson

There are growing concerns over CPI inflation after all the money printing associated with the pandemic response.

Episode 89 of Economics Explored features a conversation on just how worried we should be about future inflation in this time of MMT and QE between Economics Explored host Gene Tunny and returning guest Darren Brady Nelson, chief economist of the Australian libertarian think tank LibertyWorks and a policy adviser to the Heartland Institute.
Charts of data referred to in this episode:

Charts on CPI, money supply, US 10 year bond yield, and asset prices

This is the classic book by Milton Friedman and Anna J. Schwartz mentioned in this episode:

A Monetary History of the United States, 1867-1960

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Podcast episode

EP66 – Money and Cryptocurrency

When I recorded the latest episode of my Economics Explored podcast last Friday afternoon, the price of one Bitcoin was a bit above US$18,000 after having failed to get beyond US$20,000 in the previous weeks. In my chat with my friend Tim Hughes, I said who knew what it would end up at when the episode was finally released. Well, it turns out that the price of one Bitcoin has finally gone beyond US$20,000 (check out this Coindesk report).

The US$20,000 Bitcoin price is the latest illustration of the Greater Fool Theory. If you’re buying Bitcoin at this price you’re speculating/gambling you’ll find a greater fool who’ll buy it at a higher price. Coindesk suggests there could be a lot of greater fools out there:

Breaking above $20,000, which represented a significant hurdle in the mindset of most traders, is entirely new ground for bitcoin and opens the doors for a climb to $100,000 over the course of 2021, according to some.

As I discussed with Tim, and in my Queensland Economy Watch post from Saturday, Huge swings in Bitcoin value make it hard to believe it will ever replace traditional currencies, I’m very sceptical about the value of Bitcoin. But, hey, it’s 2020, and Bitcoin’s insane valuation is just another marker of this extraordinary year.

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