Alex speaks with Ryan Bourne as he explores the misconceptions around inflation and the dangers of price controls, emphasizing how prices act as signals to coordinate economic activity and promote growth. Ryan explains the adverse effects of government intervention in setting prices, such as shortages, quality declines, black markets, and inefficient resource allocation.
Episode Notes:
- Ryan’s book that serves as the basis for most of the discussion:
https://a.co/d/6B4n1Uf
- Summary of Friedman, Monetarist School and the K-percent rule https://www.investopedia.com/terms/m/monetarism.asp#:~:text=In%20his%20book%2C%20%22A%20Monetary,a%20fixed%20percentage%20per%20year
- Explanation of greedflation: https://cssh.northeastern.edu/what-is-greedflation-and-is-it-driving-higher-prices/
- Kahneman and Thaler's research: https://www.jstor.org/stable/1806070
- Clemens on minimum wage
https://econweb.ucsd.edu/~j1clemens/pdfs/ClemensMinWageCatoPolicyAnalysis867.pdf
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