If you are a borrower seeking a loan from a lender, you might want to secure a loan as far out in time as is prudent, given the nature of what the borrowed money will be used for. If you…
Moral hazard occurs when an agreement that people make to act in concert for their mutual benefit results in an incentive for one of them to act immorally. The classic case is insurance. When an insurance company contracts with a…
King’s College, a tiny Christian college in the heart of New York City, is facing a financial crisis that threatens its very existence. School officials are begging donors to help them meet the college’s “immediate financial needs,” including building and…
The Federal Reserve continues to impose tighter money as a cure for inflation while refusing to indict looser money as the cause of it. The Federal Open Market Committee (FOMC) this week offered “supply and demand imbalances related to the…
Just in case you were not already quaking in your fuchsia suede platform boots, the Paris fall/winter couture shows offer proof. To judge from the hemlines at notable houses like Chanel and Dior, we’re in for a rough economic ride….
Joe Biden named inflation “my top domestic priority” on Tuesday. On Wednesday, the Bureau of Labor Statistics announced an annual consumer price index of 8.3 percent for April. The president’s top domestic priority also ranks first in terms of his…
The Fed plays a hitherto unprecedented role in the U.S. economy. Growth in the money stock, which had until 2020 remained in the single digits annually, has soared by a remarkable 40 percent since the beginning of the pandemic. Yet…
Prices can rise for any number of reasons. Non-monetary events like supply-chain disruptions, or a spike in demand for a hot product or service — or a government regulation that creates scarcity — can all push up prices. The “good”…
