Robert P. Murphy
Business & Economics
Speculation not to blame for oil prices
Congress continues to wrangle on measures to curb the alleged influence of speculators on oil prices. Republicans want to insert provisions on offshore and ANWR drilling, while Democrats prefer to focus on enlarging the regulatory powers of the Commodity Futures Trading Commission (CFTC). However the political maneuvering turns out, cracking ...
Business & Economics
TIPS Have Underforecasted Inflation
Back in 2003, the Treasury began selling 5-year Treasury Inflation Protected Securities, or TIPS. (Longer maturities were available starting in 1997.) What happens is that the government pays a fixed coupon rate, but the principal is adjusted based on increases in the Consumer Price Index (CPI). Thus, TIPS yields are ...
Business & Economics
Let the markets find their own recovery
The takeover of mortgage giants Fannie Mae and Freddie Mac, yet another expansion in government intervention from the Bush administration, could end up costing hundreds of billions of dollars and in the long run will only make the U.S. financial crisis worse. The costs of the takeover are scary. By ...
Business & Economics
Why Cracking Down on Oil Speculators Will Hurt Consumers
California drivers are relieved that oil prices have retreated from record highs in July but all Americans should be concerned that the government is still scrambling to “do something” about oil prices. Proposals to curb “excessive speculation” in commodity futures enjoy bipartisan support. Yet cracking down on oil speculators will ...
Business & Economics
California’s Spending Binge Breaks Budget
California’s budget deficit has ballooned to more than $15 billion. Recently Democratic lawmakers proposed to close the gap by – you guessed it – hiking taxes on the wealthy. Yet a quick review of the facts suggests that spending cuts are a much more sensible solution. On the tax side, ...
Business & Economics
Soaking the rich won’t solve boom-and-bust cycles
California’s Democratic legislators just proposed to slap $8.2 billion in tax hikes on “the rich.” This might raise some quick cash, but it’s a recipe for recession and more of the revenue roller coaster that will only make the next budget crisis worse. The Golden State’s most productive citizens already ...
Business & Economics
Smaller Government is Only Solution to Budget Crisis
The debate over California’s fiscal crisis continues, with the governor seeking constitutional limits on spending and others calling for a flat tax or mechanisms such as “paygo.” Yet in order for any of these proposals to work, California citizens need to stop looking to the state to run their lives. ...
Business & Economics
Politicians Tell Big Oil How to Make Billions
When it comes to vilifying big evil corporations, the accusations made about oil companies never disappoint. The latest controversy centers on whether the government should allow more drilling for oil and natural gas on federal lands. A widely cited report (pdf) from the congressional Committee of Natural Resources gives all ...
Business & Economics
Rising Demand, Weak Dollar Cause Pain at the Pump
The price of oil just soared above $130 per barrel. Consumers want to know why oil prices are so high and what they can do about it. Politicians claim that greedy oil companies are hiking prices to fatten profits. But weren’t oil companies greedy in 2002, when the price was ...
Business & Economics
Why Rent Control Is Bad for California
Proposition 98, the eminent domain measure that also would have phased out rent control, failed to pass on the June 3 ballot. That means rent control will continue to hurt both landlords and tenants in California because rent control laws restrict what owners can do with their property. Suppose the ...
Speculation not to blame for oil prices
Congress continues to wrangle on measures to curb the alleged influence of speculators on oil prices. Republicans want to insert provisions on offshore and ANWR drilling, while Democrats prefer to focus on enlarging the regulatory powers of the Commodity Futures Trading Commission (CFTC). However the political maneuvering turns out, cracking ...
TIPS Have Underforecasted Inflation
Back in 2003, the Treasury began selling 5-year Treasury Inflation Protected Securities, or TIPS. (Longer maturities were available starting in 1997.) What happens is that the government pays a fixed coupon rate, but the principal is adjusted based on increases in the Consumer Price Index (CPI). Thus, TIPS yields are ...
Let the markets find their own recovery
The takeover of mortgage giants Fannie Mae and Freddie Mac, yet another expansion in government intervention from the Bush administration, could end up costing hundreds of billions of dollars and in the long run will only make the U.S. financial crisis worse. The costs of the takeover are scary. By ...
Why Cracking Down on Oil Speculators Will Hurt Consumers
California drivers are relieved that oil prices have retreated from record highs in July but all Americans should be concerned that the government is still scrambling to “do something” about oil prices. Proposals to curb “excessive speculation” in commodity futures enjoy bipartisan support. Yet cracking down on oil speculators will ...
California’s Spending Binge Breaks Budget
California’s budget deficit has ballooned to more than $15 billion. Recently Democratic lawmakers proposed to close the gap by – you guessed it – hiking taxes on the wealthy. Yet a quick review of the facts suggests that spending cuts are a much more sensible solution. On the tax side, ...
Soaking the rich won’t solve boom-and-bust cycles
California’s Democratic legislators just proposed to slap $8.2 billion in tax hikes on “the rich.” This might raise some quick cash, but it’s a recipe for recession and more of the revenue roller coaster that will only make the next budget crisis worse. The Golden State’s most productive citizens already ...
Smaller Government is Only Solution to Budget Crisis
The debate over California’s fiscal crisis continues, with the governor seeking constitutional limits on spending and others calling for a flat tax or mechanisms such as “paygo.” Yet in order for any of these proposals to work, California citizens need to stop looking to the state to run their lives. ...
Politicians Tell Big Oil How to Make Billions
When it comes to vilifying big evil corporations, the accusations made about oil companies never disappoint. The latest controversy centers on whether the government should allow more drilling for oil and natural gas on federal lands. A widely cited report (pdf) from the congressional Committee of Natural Resources gives all ...
Rising Demand, Weak Dollar Cause Pain at the Pump
The price of oil just soared above $130 per barrel. Consumers want to know why oil prices are so high and what they can do about it. Politicians claim that greedy oil companies are hiking prices to fatten profits. But weren’t oil companies greedy in 2002, when the price was ...
Why Rent Control Is Bad for California
Proposition 98, the eminent domain measure that also would have phased out rent control, failed to pass on the June 3 ballot. That means rent control will continue to hurt both landlords and tenants in California because rent control laws restrict what owners can do with their property. Suppose the ...
