Publications
My research studies how monetary institutions constrain — or fail to constrain — governments, with particular attention to dollarization, populism, and Latin America. I also work on capital theory and the Austrian school.
- Journal articles
- 66
- Book chapters
- 10
- Books
- 5
Selected articles
- 2026
Can Dollarization Mitigate the Macroeconomic Cost of Populism? Lessons from Latin America
World Development, Vol. 204, 107402
This study examines whether dollarization can mitigate the negative macroeconomic impact of populist policies. We initially consider this question using a cross-country dataset that includes many countries. The results from System Generalized Method of Moments (GMM) and staggered Difference-in-Differences (DiD) estimation point to dollarization’s mitigating effect on populist policies. However, some complications in the data induce noise and make our estimates less precise. As a follow-up, we present a series of theoretical and empirical approaches to test our hypothesis within a case study comparing Argentina and Ecuador. Both countries adopted similar populist policies almost simultaneously under different currency regimes: the former with its own currency and the latter having the dollar as legal tender. These results consistently suggest that the adverse macroeconomic effects of populism are less severe under official dollarization, highlighting an important potential benefit of this currency regime for countries that are incapable of establishing and/or maintaining their central bank independence.
BibTeX@article{Cachanosky2026Dollarization, author = {Cachanosky, Nicolas and Gibson, John D. and Ocampo, Emilio}, title = {{Can Dollarization Mitigate the Macroeconomic Cost of Populism? Lessons from Latin America}}, journal = {World Development}, year = {2026}, volume = {204}, eid = {107402}, doi = {10.1016/j.worlddev.2026.107402} } - 2025
The Institutional Impact of Left-Leaning Populism in Latin America
European Journal of Political Economy, Vol. 86, 102629
We study the institutional impact 21st-century left-leaning populist regimes have in Latin America. Looking at the iconic left-leaning populist regimes in Argentina, Bolivia, Ecuador, Nicaragua, and Venezuela, we find that these types of populist regimes impose a significant deterioration on the liberal-democracy institutional quality of their countries. The institutional cost is significant and long-lasting, and our synthetic counterfactual suggests that liberal democratic institutions would have improved if not for these populist regimes.
BibTeX@article{Cachanosky2025Institutional, author = {Cachanosky, Nicolas and Bastos, João P. and Padilla, Alexandre and Hernández, Karla C.}, title = {{The Institutional Impact of Left-Leaning Populism in Latin America}}, journal = {European Journal of Political Economy}, year = {2025}, volume = {86}, eid = {102629}, doi = {10.1016/j.ejpoleco.2024.102629} } - 2022
Can Dollarization Constrain a Populist Leader? The Case of Rafael Correa in Ecuador
Journal of Economic Behavior and Organization, Vol. 200, pp. 430–442
Rafael Correa's presidency in Ecuador (2007 – 2017) exemplifies left-leaning populist regimes in Latin America. However, there is a key difference: Ecuador is a dollarized economy. This removes the possibility of fiscal dominance over monetary policy as is common in populist regimes. This paper studies how dollarization constraints a populist leader. We discuss the incentives of a budget constraint immune to monetization and the failed attempt to launch a national digital currency.
BibTeX@article{Cachanosky2022Dollarization, author = {Cachanosky, Nicolas and Salter, Alexander W. and Savanti, Ignacio}, title = {{Can Dollarization Constrain a Populist Leader? The Case of Rafael Correa in Ecuador}}, journal = {Journal of Economic Behavior and Organization}, year = {2022}, volume = {200}, pages = {430--442}, doi = {10.1016/j.jebo.2022.06.006} } - 2021
The Federal Reserve's Response to the Covid-19 Contraction: An Initial Appraisal
Southern Economic Journal, Vol. 87, No. 4, pp. 1152–1174
We provide an initial assessment of the Federal Reserve's policy response to the COVID‐19 contraction. We briefly review the historical episode and consider the standard textbook treatment of a pandemic on the macroeconomy. We summarize and then evaluate the Fed's monetary and emergency lending policies through the end of 2020. We credit the Fed with promoting monetary stability while maintaining that it could have done more. We argue that the Fed could have achieved stability without employing its emergency lending facilities. Although some facilities likely helped to promote general liquidity, others were primarily intended to allocate credit, which blurs the line between monetary and fiscal policy. These credit allocation facilities were unwarranted and unwise.
BibTeX@article{Cachanosky2021Federal, author = {Cachanosky, Nicolas and Cutsinger, Bryan P. and Hogan, Thomas L. and Luther, William J. and Salter, Alexander W.}, title = {{The Federal Reserve's Response to the Covid-19 Contraction: An Initial Appraisal}}, journal = {Southern Economic Journal}, year = {2021}, volume = {87}, number = {4}, pages = {1152--1174}, doi = {10.1002/soej.12498} } - 2021
Immigration and Institutional Change: Did Mass Immigration Cause Peronism in Argentina?
Journal of Economic Behavior and Organization, Vol. 184, pp. 1–15
This paper studies the relationship between mass immigration in Argentina and the rise of Juan D. Peron (the iconic Argentine populist leader) in the mid-20th century. We find no evidence suggesting that mass immigration to Argentina from 1876 through 1925 explains Peronism directly or indirectly, such as through a reaction to immigrants or their descendants. Instead, a weak institutional framework and domestic conditions independent of immigrants’ role in Argentine economics and society explain Peronism's rise.
BibTeX@article{Cachanosky2021Immigration, author = {Cachanosky, Nicolas and Padilla, Alexandre and Gomez, Alejandro O.}, title = {{Immigration and Institutional Change: Did Mass Immigration Cause Peronism in Argentina?}}, journal = {Journal of Economic Behavior and Organization}, year = {2021}, volume = {184}, pages = {1--15}, doi = {10.1016/j.jebo.2021.01.027} } - 2021
Why Did Inflation Targeting Fail in Argentina?
Quarterly Review of Economics and Finance, Vol. 80, pp. 102–116
Argentina’s experience with inflation targeting started in 2016 and ended in 2018, lasting a total of only 25 months. In this paper, we study the reasons why this monetary regime failed in Argentina. We argue that the main reason for its failure was an internal inconsistency in how the central bank implemented inflation targeting, and a negative credibility shock accelerated that said inconsistency in December 2017.
BibTeX@article{Cachanosky2021Inflation, author = {Cachanosky, Nicolas and Ferrelli Mazza, Federico Julián}, title = {{Why Did Inflation Targeting Fail in Argentina?}}, journal = {Quarterly Review of Economics and Finance}, year = {2021}, volume = {80}, pages = {102--116}, doi = {10.1016/j.qref.2021.01.014} } - 2018
The Average Period of Production: The History and Rehabilitation of an Idea
Journal of the History of Economic Thought, Vol. 40, No. 1, pp. 81–98
Austrian capital theory tried to capture the intuitive and basically undeniable importance that time plays in economic life, but arguably was diverted down a blind alley with Eugen von Böhm-Bawerk’s average period of production, a purely physical measure of ‘roundaboutness’—the length of the production process. For the general case, such a measure is a chimera. But the intuition is strong, and the idea survived and reappeared at various points in the history of capital theory. Almost unknown to economists, an alternative value measure of roundaboutness has existed at least since John Hicks’s formulation of his average period (AP) in 1939, which, coincidentally, was exactly the same measure discovered by the financial actuary Frederick Macaulay in 1938, called by him “Duration” (D). Macaulay’s D, more richly interpreted as Hicks’s AP, is a measure that more appropriately captures what it was that the Austrians struggled to express over many years in their capital theory and in their analysis of the business cycle.
BibTeX@article{Lewin2018Average, author = {Lewin, Peter and Cachanosky, Nicolas}, title = {{The Average Period of Production: The History and Rehabilitation of an Idea}}, journal = {Journal of the History of Economic Thought}, year = {2018}, volume = {40}, number = {1}, pages = {81--98}, doi = {10.1017/S105383721700013X} } - 2018
The Grecian Horse: Does Immigration Lead to the Deterioration of American Institutions?
Public Choice, Vol. 174, No. 3–4, pp. 351–405
BibTeX@article{Padilla2018Grecian, author = {Padilla, Alexandre and Cachanosky, Nicolas}, title = {{The Grecian Horse: Does Immigration Lead to the Deterioration of American Institutions?}}, journal = {Public Choice}, year = {2018}, volume = {174}, number = {3--4}, pages = {351--405}, doi = {10.1007/s11127-018-0509-5} } - 2016
An Empirical Application of the EVA Framework to Business Cycles
Review of Financial Economics, Vol. 30, No. 1, pp. 60–67
Following financial concepts like duration and economic value added (EVA®) we estimate the impact of interest rate movements on firms that are more and less roundabout . We find that firms that are more roundabout, that is, work with expected cash‐flows with higher duration , are more sensitive to interest rate movements. To the extent that monetary policy is able to move the discount rate used by investors, monetary policy changes the relative present value of any investment project and therefore affects resource allocation. We show evidence that this effect is present in the U.S. in the years prior to the subprime crisis.
BibTeX@article{Cachanosky2016Empirical, author = {Cachanosky, Nicolas and Lewin, Peter}, title = {{An Empirical Application of the EVA Framework to Business Cycles}}, journal = {Review of Financial Economics}, year = {2016}, volume = {30}, number = {1}, pages = {60--67}, doi = {10.1016/j.rfe.2016.06.006} } - 2015
Implications of Machlup's Interpretation of Mises's Epistemology
Journal of the History of Economic Thought, Vol. 37, No. 1, pp. 111–138
We argue that Fritz Machlup’s (1995) interpretation of Mises’s epistemology is at least as, if not more, plausible than Murray N. Rothbard’s (1957) interpretation. The implications of Machlup’s interpretation of Mises and of Austrian epistemology affect Austrians and non- Austrians in their academic interaction. Machlup’s interpretation shows that Austrian epistemology is well grounded in post-Popperian epistemology and that most criticisms of Austrian economics based on its aprioristic character are misplaced. Furthermore, Machlup’s interpretation provides us with a setting to rebuild the academic interaction between Austrians and non-Austrians that was characteristic of the early twentieth century.
BibTeX@article{Zanotti2015Implications, author = {Zanotti, Gabriel J. and Cachanosky, Nicolas}, title = {{Implications of Machlup's Interpretation of Mises's Epistemology}}, journal = {Journal of the History of Economic Thought}, year = {2015}, volume = {37}, number = {1}, pages = {111--138}, doi = {10.1017/S1053837214000777} }
Journal articles
- Forthcoming
Do Rights of Nature Protect the Environment? Macro-Level Evidence from Ecuador
Constitutional Political Economy
Left-leaning populist regimes, such as Rafael Correa’s government in Ecuador (2007–2016), often claim to protect the environment from the negative effects of free-market regimes. This study examines the environmental impact in Ecuador following the 2008 Constitution, which was the first in the world to include rights of nature. We find no statistical evidence that Correa’s constitutional change had any measurable effect on Ecuador’s macro-level environmental outcomes, as captured by forest cover, greenhouse gas emissions, renewable energy output, and carbon intensity of GDP.
BibTeX@article{BastosForthcomingRights, author = {Bastos, João P. and Cachanosky, Nicolas and Callais, Justin}, title = {{Do Rights of Nature Protect the Environment? Macro-Level Evidence from Ecuador}}, journal = {Constitutional Political Economy}, year = {forthcoming}, doi = {10.1007/s10602-026-09514-6} } Ludwig Lachmann's Capital and Its Structure at Its 70-Year Publication Anniversary
The Review of Austrian Economics
Ludwig M. Lachmann published the first edition of Capital and its Structure in 1956, coming up to its seventieth publication anniversary. This work was an important milestone in his academic career cementing his pwrticular epistemology to his now iconic theory of Capital. The early reception of Lachmann’s work by Austrian scholars varied widely from admiration to severely critical. But current Austrian scholars are much more approving and appreciative of his work in general and of his capital theory in particular. In this paper we show how Lachmann’s approach to capital theory lends itself to the concept of Macaulay’s Duration (Hicks’s average period) and to “capital as finance.” When one incorporates such financial concepts into the Austrian tradition, we can grasp a better understanding of forward-looking, entrepreneurial attempts to create value.
BibTeX@article{LewinForthcomingLudwig, author = {Lewin, Peter and Cachanosky, Nicolas}, title = {{Ludwig Lachmann's Capital and Its Structure at Its 70-Year Publication Anniversary}}, journal = {The Review of Austrian Economics}, year = {forthcoming}, doi = {10.1007/s11138-026-00726-5} }A Lakatosian and Non-conventionalist Reconstruction of Mises
The Review of Austrian Economics
We argue that a lakatosian interpretation of Mises’s epistemology does not necessarily lead to a conventionalist foundation of economic science. We also argue that a realistic reading of Mises’s epistemology is not only possible but also Mises’s view of his epistemological stance.
BibTeX@article{ZanottiForthcomingLakatosian, author = {Zanotti, Gabriel J. and Borella, Agustina and Cachanosky, Nicolas}, title = {{A Lakatosian and Non-conventionalist Reconstruction of Mises}}, journal = {The Review of Austrian Economics}, year = {forthcoming}, doi = {10.1007/s11138-025-00681-7} }The Political Economy of Populism Regime Length
Constitutional Political Economy
Left-leaning populist regimes in 21st-century Latin America have become notoriously long, including some that maintained their power by repealing term limits. Along with changes in external factors, we argue that repealing term limits allowed populist leaders to develop longer time horizons and behave more like stationary than roving bandits. We show that, relative to those constrained by time limits, unconstrained populist leaders mitigate the economic effects of the populist cycle of boom, stagnation, and bust. Populists constrained by term limits act like roving bandits, engaging in more extractive rent-seeking that leads to more significant economic fluctuations.
BibTeX@article{BastosForthcomingPolitical, author = {Bastos, João P. and Cachanosky, Nicolas and Faintich, Tomás}, title = {{The Political Economy of Populism Regime Length}}, journal = {Constitutional Political Economy}, year = {forthcoming}, doi = {10.1007/s10602-025-09465-4} }- 2026
Can Dollarization Mitigate the Macroeconomic Cost of Populism? Lessons from Latin America
World Development, Vol. 204, 107402
This study examines whether dollarization can mitigate the negative macroeconomic impact of populist policies. We initially consider this question using a cross-country dataset that includes many countries. The results from System Generalized Method of Moments (GMM) and staggered Difference-in-Differences (DiD) estimation point to dollarization’s mitigating effect on populist policies. However, some complications in the data induce noise and make our estimates less precise. As a follow-up, we present a series of theoretical and empirical approaches to test our hypothesis within a case study comparing Argentina and Ecuador. Both countries adopted similar populist policies almost simultaneously under different currency regimes: the former with its own currency and the latter having the dollar as legal tender. These results consistently suggest that the adverse macroeconomic effects of populism are less severe under official dollarization, highlighting an important potential benefit of this currency regime for countries that are incapable of establishing and/or maintaining their central bank independence.
BibTeX@article{Cachanosky2026Dollarization, author = {Cachanosky, Nicolas and Gibson, John D. and Ocampo, Emilio}, title = {{Can Dollarization Mitigate the Macroeconomic Cost of Populism? Lessons from Latin America}}, journal = {World Development}, year = {2026}, volume = {204}, eid = {107402}, doi = {10.1016/j.worlddev.2026.107402} } - 2025
Classical Liberalism in Argentina, from 1884 to 2023
Econ Journal Watch, Vol. 22, No. 1, pp. 415–436
In a prior article, we treated classical liberalism in Argentina from 1816 to 1884. Here we pick up around 1884, during Argentina’s golden age, and continue through the twentieth century and up to December 2023, stopping just as Javier Milei became President of Argentina. This article highlights the impact of nationalist education reforms starting in 1908, which progressively undermined liberal foundations and contributed to the emergence of Peronism and institutional instability. The article explores the persistence of classical liberal ideas through key figures such as Alberto Benegas Lynch, Carlos Sánchez Sañudo, and Álvaro Alsogaray, as well as institutions like ESEADE and UCEMA. It also analyzes how the 2001 economic crisis bolstered statist approaches, while certain academic institutions and think tanks continued to uphold classical liberal ideas.
BibTeX@article{Gomez2025Classical, author = {Gomez, Alejandro O. and Cachanosky, Nicolas}, title = {{Classical Liberalism in Argentina, from 1884 to 2023}}, journal = {Econ Journal Watch}, year = {2025}, volume = {22}, number = {1}, pages = {415--436}, url = {https://econjwatch.org/articles/classical-liberalism-in-argentina-1884-to-2023} } The Institutional Impact of Left-Leaning Populism in Latin America
European Journal of Political Economy, Vol. 86, 102629
We study the institutional impact 21st-century left-leaning populist regimes have in Latin America. Looking at the iconic left-leaning populist regimes in Argentina, Bolivia, Ecuador, Nicaragua, and Venezuela, we find that these types of populist regimes impose a significant deterioration on the liberal-democracy institutional quality of their countries. The institutional cost is significant and long-lasting, and our synthetic counterfactual suggests that liberal democratic institutions would have improved if not for these populist regimes.
BibTeX@article{Cachanosky2025Institutional, author = {Cachanosky, Nicolas and Bastos, João P. and Padilla, Alexandre and Hernández, Karla C.}, title = {{The Institutional Impact of Left-Leaning Populism in Latin America}}, journal = {European Journal of Political Economy}, year = {2025}, volume = {86}, eid = {102629}, doi = {10.1016/j.ejpoleco.2024.102629} }Did Dollarization Help Ecuador?
Scottish Journal of Political Economy, Vol. 72, No. 1, pp. 1–11
This paper studies the impact of dollarization on the evolution of GDP per capita in Ecuador using synthetic control analysis (SCA). The results suggest a significant likelihood of a positive impact of dollarization. These results are relevant for countries with a history of high, persistent, and volatile inflation considering dollarization as a currency regime.
BibTeX@article{Cachanosky2025Dollarization, author = {Cachanosky, Nicolas and Ocampo, Emilio and Hernández, Karla C. and Ramseur, John}, title = {{Did Dollarization Help Ecuador?}}, journal = {Scottish Journal of Political Economy}, year = {2025}, volume = {72}, number = {1}, pages = {1--11}, doi = {10.1111/sjpe.12397} }- 2024
Classical Liberalism in Argentina, from 1816 to 1884
Econ Journal Watch, Vol. 21, No. 1, pp. 415–436
This article has been undertaken as the first in a projected multipart series that will treat classical liberalism in Argentina from 1816 to 2024. The present article studies the classical liberal influence in early Argentine history, from its first thinkers after independence in 1816 to the 1853 constitution and its aftermath. The paper focuses on the channels by which classical liberal thinking animated and influenced Argentine intellectuals and leaders. The foremost protagonist in the story is Juan Bautista Alberdi (1810–1884). As indicated in the title of the present article, we have used Alberdi’s death year to close the period covered in this Part I on classical liberalism in Argentina.
BibTeX@article{Gomez2024Classical, author = {Gomez, Alejandro O. and Cachanosky, Nicolas}, title = {{Classical Liberalism in Argentina, from 1816 to 1884}}, journal = {Econ Journal Watch}, year = {2024}, volume = {21}, number = {1}, pages = {415--436}, url = {https://econjwatch.org/articles/classical-liberalism-in-argentina-from-1816-to-1884} } - 2023
Hermeneutics and Phenomenology in the Social Sciences: Lessons from the Austrian School of Economics Case
The Review of Austrian Economics, Vol. 36, No. 3, pp. 403–415
We study a case that applies hermeneutics to social sciences, in particular to the Austrian school of economics. We argue that an inaccurate treatment of hermeneutics contributed to an epistemological downgrade of the Austrian school in the economic scientific community. We discuss how this shortcoming can be fixed and how a proper hermeneutic application to the Austrian school explains why this school of thought is neither positivist nor postmodern.
BibTeX@article{Zanotti2023Hermeneutics, author = {Zanotti, Gabriel J. and Borella, Agustina and Cachanosky, Nicolas}, title = {{Hermeneutics and Phenomenology in the Social Sciences: Lessons from the Austrian School of Economics Case}}, journal = {The Review of Austrian Economics}, year = {2023}, volume = {36}, number = {3}, pages = {403--415}, doi = {10.1007/s11138-021-00548-7} } Lessons from Latin America Dollarization in the Twenty First Century
The Economists' Voice, Vol. 20, No. 1, pp. 25–42
This paper looks at twenty first-century dollarization in Latin America. We emphasize that dollarization is a complex reform that can be implemented in many different ways. We draw three important lessons from these experiences: (1) keeping the central bank after dollarizing is an unnecessary institutional vulnerability that facilitates compulsive de-dollarization, (2) public opinion offers the most important defense of dollarization against populist attempts at reversal, and (3) even if dollarization is not supported with structural reforms (or such reforms are reversed), it remains superior to the counterfactual of no reforms with persistent, high and volatile inflation.
BibTeX@article{Cachanosky2023Lessons, author = {Cachanosky, Nicolas and Ocampo, Emilio and Salter, Alexander W.}, title = {{Lessons from Latin America Dollarization in the Twenty First Century}}, journal = {The Economists' Voice}, year = {2023}, volume = {20}, number = {1}, pages = {25--42}, doi = {10.1515/ev-2023-0001} }Immigration and Economic Freedom of the US States: Does the Institutional Quality of Immigrants' Origin Countries Matter?
Contemporary Economic Policy, Vol. 41, No. 3, pp. 489–512
When people immigrate to the United States from countries with less economic freedom, they do not dampen economic freedom in their destination states. We use the Economic Freedom of North America report to rate the economic freedom of US states, and we group immigrants by how far below the United States their origin countries score in the Economic Freedom of the World report. Our major findings hold true even when states receive immigrants from countries with far less economic freedom. Most relationships between immigration and the US states' economic freedom scores are neither statistically nor economically significant.
BibTeX@article{Padilla2023Immigration, author = {Padilla, Alexandre and Cachanosky, Nicolas}, title = {{Immigration and Economic Freedom of the US States: Does the Institutional Quality of Immigrants' Origin Countries Matter?}}, journal = {Contemporary Economic Policy}, year = {2023}, volume = {41}, number = {3}, pages = {489--512}, doi = {10.1111/coep.12595} }- 2022
Monetary Disorder in Buenos Aires Province (1822–1881)
The Independent Review, Vol. 27, No. 1, pp. 23–35
The series of banking failures in Buenos Aires Province in the 1800s was due not to a shortage of precious metals but to inefficient regulation, burdensome Treasury deficits and monopoly power. This is yet another historical example of how wars result in the degradation of monetary and banking institutions.
BibTeX@article{Ravier2022Monetary, author = {Ravier, Adrián O. and Cachanosky, Nicolas}, title = {{Monetary Disorder in Buenos Aires Province (1822–1881)}}, journal = {The Independent Review}, year = {2022}, volume = {27}, number = {1}, pages = {23--35}, url = {https://www.independent.org/publications/tir/article.asp?id=1716} } Can Dollarization Constrain a Populist Leader? The Case of Rafael Correa in Ecuador
Journal of Economic Behavior and Organization, Vol. 200, pp. 430–442
Rafael Correa's presidency in Ecuador (2007 – 2017) exemplifies left-leaning populist regimes in Latin America. However, there is a key difference: Ecuador is a dollarized economy. This removes the possibility of fiscal dominance over monetary policy as is common in populist regimes. This paper studies how dollarization constraints a populist leader. We discuss the incentives of a budget constraint immune to monetization and the failed attempt to launch a national digital currency.
BibTeX@article{Cachanosky2022Dollarization, author = {Cachanosky, Nicolas and Salter, Alexander W. and Savanti, Ignacio}, title = {{Can Dollarization Constrain a Populist Leader? The Case of Rafael Correa in Ecuador}}, journal = {Journal of Economic Behavior and Organization}, year = {2022}, volume = {200}, pages = {430--442}, doi = {10.1016/j.jebo.2022.06.006} }The Upper Turning Point in the Austrian Business Cycle Theory
The Review of Austrian Economics, Vol. 35, No. 1, pp. 89–97
This paper defends the relevance of Austrian Business Cycle theory (ABCT) within a fiat money regime, by providing an answer to whether a constant rate of credit expansion necessarily leads to a boom-bust cycle. We claim that this scenario has two potential outcomes, (1) a change in money demand brings the economy back towards equilibrium or (2) the economy will shift to a sub-optimal but still sustainable path. We identify capital heterogeneity effects and the Ricardo effect as distinctly Austrian explanations for an upper turning point, even in a fiat money regime.
BibTeX@article{Evans2022Upper, author = {Evans, Anthony J. and Cachanosky, Nicolas and Thorpe, Robert}, title = {{The Upper Turning Point in the Austrian Business Cycle Theory}}, journal = {The Review of Austrian Economics}, year = {2022}, volume = {35}, number = {1}, pages = {89--97}, doi = {10.1007/s11138-019-00497-2} }- 2021
Latin America Left-Populism, Price of Commodities, and Economic Crises
Journal of Private Enterprise, Vol. 36, No. 2, pp. 1–17
This paper studies the effect of commodity prices and economic crisis on twenty-first century Latin American left-leaning populism. Our results shows that higher economic prices are correlated with more populism conditional on countries already being under a populist regime. We do not have conclusive statistical evidence of the effect of economic crisis on populist regimes.
BibTeX@article{Cachanosky2021Latin, author = {Cachanosky, Nicolas and Padilla, Alexandre}, title = {{Latin America Left-Populism, Price of Commodities, and Economic Crises}}, journal = {Journal of Private Enterprise}, year = {2021}, volume = {36}, number = {2}, pages = {1--17}, url = {http://journal.apee.org/index.php/PARTE1_2021_Journal_of_Private_Enterprise_Vol_36_No_2_Summer} } Microfoundations and Macroeconomics: 20 Years
The Review of Austrian Economics, Vol. 34, No. 2, pp. 279–288
This paper summarizes Horwitz’s contributions in Microfoundations and Macroeconomics: An Austrian Perspective and evaluates its connection with recent contributions in Austrian macroeconomics. The paper emphasizes the connection between relative price, monetary equilibrium, and monetary policy. The paper pays particular attention to the implications of Horwitz’s denomination of capital theory as a “missing link” in economic theory.
BibTeX@article{Cachanosky2021Microfoundations, author = {Cachanosky, Nicolas}, title = {{Microfoundations and Macroeconomics: 20 Years}}, journal = {The Review of Austrian Economics}, year = {2021}, volume = {34}, number = {2}, pages = {279--288}, doi = {10.1007/s11138-020-00500-1} }The Federal Reserve's Response to the Covid-19 Contraction: An Initial Appraisal
Southern Economic Journal, Vol. 87, No. 4, pp. 1152–1174
We provide an initial assessment of the Federal Reserve's policy response to the COVID‐19 contraction. We briefly review the historical episode and consider the standard textbook treatment of a pandemic on the macroeconomy. We summarize and then evaluate the Fed's monetary and emergency lending policies through the end of 2020. We credit the Fed with promoting monetary stability while maintaining that it could have done more. We argue that the Fed could have achieved stability without employing its emergency lending facilities. Although some facilities likely helped to promote general liquidity, others were primarily intended to allocate credit, which blurs the line between monetary and fiscal policy. These credit allocation facilities were unwarranted and unwise.
BibTeX@article{Cachanosky2021Federal, author = {Cachanosky, Nicolas and Cutsinger, Bryan P. and Hogan, Thomas L. and Luther, William J. and Salter, Alexander W.}, title = {{The Federal Reserve's Response to the Covid-19 Contraction: An Initial Appraisal}}, journal = {Southern Economic Journal}, year = {2021}, volume = {87}, number = {4}, pages = {1152--1174}, doi = {10.1002/soej.12498} }Immigration and Institutional Change: Did Mass Immigration Cause Peronism in Argentina?
Journal of Economic Behavior and Organization, Vol. 184, pp. 1–15
This paper studies the relationship between mass immigration in Argentina and the rise of Juan D. Peron (the iconic Argentine populist leader) in the mid-20th century. We find no evidence suggesting that mass immigration to Argentina from 1876 through 1925 explains Peronism directly or indirectly, such as through a reaction to immigrants or their descendants. Instead, a weak institutional framework and domestic conditions independent of immigrants’ role in Argentine economics and society explain Peronism's rise.
BibTeX@article{Cachanosky2021Immigration, author = {Cachanosky, Nicolas and Padilla, Alexandre and Gomez, Alejandro O.}, title = {{Immigration and Institutional Change: Did Mass Immigration Cause Peronism in Argentina?}}, journal = {Journal of Economic Behavior and Organization}, year = {2021}, volume = {184}, pages = {1--15}, doi = {10.1016/j.jebo.2021.01.027} }Why Did Inflation Targeting Fail in Argentina?
Quarterly Review of Economics and Finance, Vol. 80, pp. 102–116
Argentina’s experience with inflation targeting started in 2016 and ended in 2018, lasting a total of only 25 months. In this paper, we study the reasons why this monetary regime failed in Argentina. We argue that the main reason for its failure was an internal inconsistency in how the central bank implemented inflation targeting, and a negative credibility shock accelerated that said inconsistency in December 2017.
BibTeX@article{Cachanosky2021Inflation, author = {Cachanosky, Nicolas and Ferrelli Mazza, Federico Julián}, title = {{Why Did Inflation Targeting Fail in Argentina?}}, journal = {Quarterly Review of Economics and Finance}, year = {2021}, volume = {80}, pages = {102--116}, doi = {10.1016/j.qref.2021.01.014} }- 2020
A Panel Data Analysis of Latin American Populism
Constitutional Political Economy, Vol. 31, No. 3, pp. 329–343
This paper provides new estimates of the effects of left-of-center populist regimes on economic developments in the 21st century in Latin America. In contrast to earlier research, we take account of the price shocks that may also have affected economic development during these regimes’ time in office. In general, we find that left-populist regimes reduced per capita real income in both the short and long run, after accounting for those price shocks.
BibTeX@article{Cachanosky2020Panel, author = {Cachanosky, Nicolas and Padilla, Alexandre}, title = {{A Panel Data Analysis of Latin American Populism}}, journal = {Constitutional Political Economy}, year = {2020}, volume = {31}, number = {3}, pages = {329--343}, doi = {10.1007/s10602-020-09302-w} } Immigration and Economic Freedom: Does Education Matter?
Journal of Private Enterprise, Vol. 35, No. 1, pp. 29–57
This paper builds on Padilla and Cachanosky (2018) and examines if immigrants’ educational attainments matter, particularly for immigrants with low educational attainments, when testing immigrants’ impact on the economic freedom of the US states. Except in the area of government transfers and subsidies, we do not find any evidence to support such a hypothesis. In addition, we find that the negative impact on economic freedom in the area of government transfers and subsidies that is associated with immigrants who lack a high school diploma is likely trivial. Our results are robust to various specifications.
BibTeX@article{Padilla2020Immigrationa, author = {Padilla, Alexandre and Cachanosky, Nicolas and Beck, Jonathan}, title = {{Immigration and Economic Freedom: Does Education Matter?}}, journal = {Journal of Private Enterprise}, year = {2020}, volume = {35}, number = {1}, pages = {29--57}, url = {http://journal.apee.org/index.php?title=2020_Journal_of_Private_Enterprise_Vol_35_No_1_Spring_parte2} }Rediscovering Buchanan's Rediscovery: Non-Market Exchange versus Antiseptic Allocation
Public Choice, Vol. 183, No. 3–4, pp. 461–477
While Buchanan is best known for the economics of politics and constitutions, his seminal contributions to this field are but one branch of his more underlying methodology and approach to doing social science. Buchanan’s fundamental project was to re-orient economics and social science toward an analysis of symbiotic exchange (catallactics) rather than of antiseptic allocation (optimization). The most definite statement of this contribution lies in Buchanan’s 1963 presidential address to the Southern Economic Association, “What should economists do?” which was later expanded into a book of the same title. This paper seeks to draw attention to several of Buchanan’s more recent but lesser known articles where he fully develops this theme. He calls on economists to rediscover Adam Smith’s “elementary notion” about the division of labor and the extent of the market, and he professes the notion of “generalized increasing returns” as a mechanism for economists to rediscover their Scottish Enlightenment roots within the neoclassical framework. In this same vein, we also discuss how Buchanan’s rediscovery might apply to two prominent and ongoing twenty-first century issues, trade restrictions and populism.
BibTeX@article{Cachanosky2020Rediscovering, author = {Cachanosky, Nicolas and Lopez, Edward J.}, title = {{Rediscovering Buchanan's Rediscovery: Non-Market Exchange versus Antiseptic Allocation}}, journal = {Public Choice}, year = {2020}, volume = {183}, number = {3--4}, pages = {461--477}, doi = {10.1007/s11127-020-00819-0} }Entrepreneurship in a Theory of Capital and Finance: Illustrating the Use of Subjective Quantification
Managerial and Decision Economics, Vol. 41, No. 5, pp. 735–743
In order to identify an entrepreneurial opportunity, calculation is required. The entrepreneur must do more than simply perceive an opportunity to do something new to create value in the marketplace. Insofar as alternative possible actions exist, the entrepreneur must choose between them. And even as the chosen opportunity is pursued, he must choose between alternative modes of production and organization in the ongoing combination of resources. The details of the kind of calculation required have been left mostly implicit in the literature. This article borrows from the finance literature to suggest a general and universal framework for such calculation and to offer one possible more specific method for using that framework for ongoing entrepreneurial judgment calls. We describe the familiar context in which entrepreneurial decisions occur and reiterate the importance of understanding the nature of capital in such a context of subjective value, uncertainty, and entrepreneurial imagination. We describe the familiar universal present value arithmetic and how it applies to entrepreneurial calculation. Finally, we take a deeper look at this framework, providing an example of one method of analysis used in financial management.
BibTeX@article{Lewin2020Entrepreneurship, author = {Lewin, Peter and Cachanosky, Nicolas}, title = {{Entrepreneurship in a Theory of Capital and Finance: Illustrating the Use of Subjective Quantification}}, journal = {Managerial and Decision Economics}, year = {2020}, volume = {41}, number = {5}, pages = {735--743}, doi = {10.1002/mde.3133} }The Super-Alertness of Central Banks
The Review of Austrian Economics, Vol. 33, No. 1–2, pp. 187–200
BibTeX@article{Cachanosky2020Super, author = {Cachanosky, Nicolas and Salter, Alexander W.}, title = {{The Super-Alertness of Central Banks}}, journal = {The Review of Austrian Economics}, year = {2020}, volume = {33}, number = {1--2}, pages = {187--200}, doi = {10.1007/s11138-019-00436-1} }Immigration, Economic Freedom, and Ideology
The International Trade Journal, Vol. 34, No. 1, pp. 5–17
Concerns about immigrants’ impact on US institutions are not new. We find such concerns in the correspondences and writings of Benjamin Franklin, Thomas Jefferson, and Alexander Hamilton. More recently, Borjas argues immigrants from countries with poor institutions could substantially undermine US institutions negating all economic gains associated with immigration in terms of GDP and income. In this article, we review our research, attempting to measure immigrants’ impact on US states’ institutions. Our results don’t confirm Borjas’s hypothesis. Our results show that whatever impact immigrants may have on US institutions is neither statistically nor economically significant.
BibTeX@article{Padilla2020Immigrationb, author = {Padilla, Alexandre and Cachanosky, Nicolas}, title = {{Immigration, Economic Freedom, and Ideology}}, journal = {The International Trade Journal}, year = {2020}, volume = {34}, number = {1}, pages = {5--17}, doi = {10.1080/08853908.2019.1695026} }- 2019
Can Bitcoin Become Money? The Monetary Rule Problem
Australian Economic Papers, Vol. 58, No. 4, pp. 365–374
The growing literature on Bitcoin can be divided into two groups. One performs an economic analysis of Bitcoin focusing on its monetary characteristics. The other one takes a financial look at the price of Bitcoin. Interestingly, both of these groups have not given much more than passing comments to the problem of whether or not Bitcoin has the right monetary rule in order to become a well‐established currency. This paper argues that Bitcoin in particular, and cryptocurrencies in general, do not have a good monetary rule and that this shortcoming seriously limits its prospect of becoming widely used money.
BibTeX@article{Cachanosky2019Bitcoin, author = {Cachanosky, Nicolas}, title = {{Can Bitcoin Become Money? The Monetary Rule Problem}}, journal = {Australian Economic Papers}, year = {2019}, volume = {58}, number = {4}, pages = {365--374}, doi = {10.1111/1467-8454.12158} } Re-switching, the Average Period of Production and the Austrian Business Cycle Theory: A Comment on Fratini
The Review of Austrian Economics, Vol. 32, No. 4, pp. 375–382
BibTeX@article{Lewin2019Switching, author = {Lewin, Peter and Cachanosky, Nicolas}, title = {{Re-switching, the Average Period of Production and the Austrian Business Cycle Theory: A Comment on Fratini}}, journal = {The Review of Austrian Economics}, year = {2019}, volume = {32}, number = {4}, pages = {375--382}, doi = {10.1007/s11138-019-00460-1} }Latin American Populism in the Twenty-First Century
The Independent Review, Vol. 24, No. 2, pp. 209–226
BibTeX@article{Padilla2019Latin, author = {Padilla, Alexandre and Cachanosky, Nicolas}, title = {{Latin American Populism in the Twenty-First Century}}, journal = {The Independent Review}, year = {2019}, volume = {24}, number = {2}, pages = {209--226}, url = {http://www.independent.org/publications/tir/article.asp?id=1416} }- 2018
The Cost of Populism in Argentina, 2002–2015
MISES: Interdisciplinary Journal in Philosophy, Law and Economics, Special issue
This paper studies the historical context, and economic and institutional impact of the Néstor Kirchner’s and Cristina Fernández de Kirchner’s presidencies (Kirchner-Kirchner administration) in Argentina. The effects of the major economic policies during their presidency are explained as well as the indices fall of the institutional quality. The challenges of stepping out of populism are also mentioned.
BibTeX@article{Cachanosky2018Cost, author = {Cachanosky, Nicolas}, title = {{The Cost of Populism in Argentina, 2002–2015}}, journal = {MISES: Interdisciplinary Journal in Philosophy, Law and Economics}, year = {2018}, doi = {10.30800/mises.2018.v0.965} } The Role of Capital Structure in Austrian Business Cycle Theory
Journal of Private Enterprise, Vol. 33, No. 2, pp. 21–32
BibTeX@article{Cachanosky2018Role, author = {Cachanosky, Nicolas and Lewin, Peter}, title = {{The Role of Capital Structure in Austrian Business Cycle Theory}}, journal = {Journal of Private Enterprise}, year = {2018}, volume = {33}, number = {2}, pages = {21--32}, url = {http://journal.apee.org/index.php?title=2018_Journal_of_Private_Enterprise_Vol_33_No_2_Summer_parte2} }Substance and Semantics: The Question of Capital
Journal of Economic Behavior and Organization, Vol. 150, pp. 423–431
The perennial question ‘What is Capital’ has been getting some attention recently. Although the distinction between capital as a financial construct and capital as a collection of physical production-goods is well known, we argue that the former concept is undepreciated. The two concepts are often conflated in practice, and the relationship between them is seldom well understood. We spell out the financial concept of capital emphasizing its importance as an indispensable instrument of calculation and accounting. We consider some views of human, social and other capital and how we differ from them. We present reasons for rejecting the notion of an aggregate production function in standard growth theory (which uses the notion of an aggregate stock of physical capital) and as recently used by Thomas Piketty in his well- known work.
BibTeX@article{Lewin2018Substance, author = {Lewin, Peter and Cachanosky, Nicolas}, title = {{Substance and Semantics: The Question of Capital}}, journal = {Journal of Economic Behavior and Organization}, year = {2018}, volume = {150}, pages = {423--431}, doi = {10.1016/j.jebo.2018.01.024} }Value and Capital: Austrian Capital Theory, Retrospect and Prospect
The Review of Austrian Economics, Vol. 31, No. 1, pp. 1–26
BibTeX@article{Lewin2018Value, author = {Lewin, Peter and Cachanosky, Nicolas}, title = {{Value and Capital: Austrian Capital Theory, Retrospect and Prospect}}, journal = {The Review of Austrian Economics}, year = {2018}, volume = {31}, number = {1}, pages = {1--26}, doi = {10.1007/s11138-016-0374-8} }The Average Period of Production: The History and Rehabilitation of an Idea
Journal of the History of Economic Thought, Vol. 40, No. 1, pp. 81–98
Austrian capital theory tried to capture the intuitive and basically undeniable importance that time plays in economic life, but arguably was diverted down a blind alley with Eugen von Böhm-Bawerk’s average period of production, a purely physical measure of ‘roundaboutness’—the length of the production process. For the general case, such a measure is a chimera. But the intuition is strong, and the idea survived and reappeared at various points in the history of capital theory. Almost unknown to economists, an alternative value measure of roundaboutness has existed at least since John Hicks’s formulation of his average period (AP) in 1939, which, coincidentally, was exactly the same measure discovered by the financial actuary Frederick Macaulay in 1938, called by him “Duration” (D). Macaulay’s D, more richly interpreted as Hicks’s AP, is a measure that more appropriately captures what it was that the Austrians struggled to express over many years in their capital theory and in their analysis of the business cycle.
BibTeX@article{Lewin2018Average, author = {Lewin, Peter and Cachanosky, Nicolas}, title = {{The Average Period of Production: The History and Rehabilitation of an Idea}}, journal = {Journal of the History of Economic Thought}, year = {2018}, volume = {40}, number = {1}, pages = {81--98}, doi = {10.1017/S105383721700013X} }The Grecian Horse: Does Immigration Lead to the Deterioration of American Institutions?
Public Choice, Vol. 174, No. 3–4, pp. 351–405
BibTeX@article{Padilla2018Grecian, author = {Padilla, Alexandre and Cachanosky, Nicolas}, title = {{The Grecian Horse: Does Immigration Lead to the Deterioration of American Institutions?}}, journal = {Public Choice}, year = {2018}, volume = {174}, number = {3--4}, pages = {351--405}, doi = {10.1007/s11127-018-0509-5} }- 2017
Secular Growth in Garrison's Model: A Comment
The Quarterly Journal of Austrian Economics, Vol. 20, No. 4, pp. 354–359
BibTeX@article{Cachanosky2017Secular, author = {Cachanosky, Nicolas}, title = {{Secular Growth in Garrison's Model: A Comment}}, journal = {The Quarterly Journal of Austrian Economics}, year = {2017}, volume = {20}, number = {4}, pages = {354--359}, url = {https://mises.org/quarterly-journal-austrian-economics/secular-growth-garrisons-model-comment} } Entrepreneurship and Bitcoin: Breaking the Network Effect
The Review of Austrian Economics, Vol. 30, No. 3, pp. 263–275
BibTeX@article{Nair2017Entrepreneurship, author = {Nair, Malavika and Cachanosky, Nicolas}, title = {{Entrepreneurship and Bitcoin: Breaking the Network Effect}}, journal = {The Review of Austrian Economics}, year = {2017}, volume = {30}, number = {3}, pages = {263--275}, doi = {10.1007/s11138-016-0348-x} }Austrian Economics, Market Process, and the EVA Framework
Journal of Business Valuation and Economic Loss Analysis, Vol. 12, Suppl. 1
BibTeX@article{Cachanosky2017Austrian, author = {Cachanosky, Nicolas}, title = {{Austrian Economics, Market Process, and the EVA Framework}}, journal = {Journal of Business Valuation and Economic Loss Analysis}, year = {2017}, volume = {12}, doi = {10.1515/jbvela-2016-0014} }The Myth of the Natural Resource Curse: A Case Study for Algeria
Journal of Private Enterprise, Vol. 32, No. 2, pp. 1–15
BibTeX@article{Akacem2017Myth, author = {Akacem, Mohammed and Cachanosky, Nicolas}, title = {{The Myth of the Natural Resource Curse: A Case Study for Algeria}}, journal = {Journal of Private Enterprise}, year = {2017}, volume = {32}, number = {2}, pages = {1--15}, url = {http://journal.apee.org/index.php?title=2017_Journal_of_Private_Enterprise_vol_32_no_2_Summer_parte1.pdf} }The View from Vienna: An Analysis of the Renewed Interest in the Mises-Hayek Theory of Business Cycles
The Review of Austrian Economics, Vol. 30, No. 2, pp. 169–192
BibTeX@article{Cachanosky2017View, author = {Cachanosky, Nicolas and Salter, Alexander W.}, title = {{The View from Vienna: An Analysis of the Renewed Interest in the Mises-Hayek Theory of Business Cycles}}, journal = {The Review of Austrian Economics}, year = {2017}, volume = {30}, number = {2}, pages = {169--192}, doi = {10.1007/s11138-016-0340-5} }- 2016
A Mathematical Version of Garrison's Model
The Quarterly Journal of Austrian Economics, Vol. 19, No. 3, pp. 225–247
BibTeX@article{Cachanosky2016Mathematical, author = {Cachanosky, Nicolas and Padilla, Alexandre}, title = {{A Mathematical Version of Garrison's Model}}, journal = {The Quarterly Journal of Austrian Economics}, year = {2016}, volume = {19}, number = {3}, pages = {225--247}, url = {https://mises.org/quarterly-journal-austrian-economics/mathematical-version-garrisons-model} } Offsetting and Sterilization Mechanisms in Argentina (1992–2014)
Credit and Capital Markets, Vol. 49, No. 4, pp. 515–534
We test the existence and extent of capital flows as an offset to monetary policy in Argentina from 1992–2014. After providing an analysis of Argentina’s past and current economic conditions, a theoretical framework of the offset and sterilization mechanisms will be provided. Then, with the use of VAR and IRF analysis, it is shown that a one standard deviation shock to monetary policy (measured by changes in net domestic assets) is offset between 27 %–32 % by responsive capital flows (measured by changes in net foreign assets). Furthermore, the results indicate that the Argentine government more than sterilizes shocks to capital flows through compensation of expansionary monetary policy.
BibTeX@article{Cachanosky2016Offsetting, author = {Cachanosky, Nicolas and Thomas, Carolyn}, title = {{Offsetting and Sterilization Mechanisms in Argentina (1992–2014)}}, journal = {Credit and Capital Markets}, year = {2016}, volume = {49}, number = {4}, pages = {515--534}, doi = {10.3790/ccm.49.4.515} }Ludwig von Mises's Approach to Capital as a Bridge Between Austrian and Institutional Economics
Journal of Institutional Economics, Vol. 12, No. 4, pp. 847–866
Ludwig von Mises seems to be something of an outlier within the Austrian school when it comes to capital – though his position is clearly foreshadowed in a neglected article by Carl Menger (1888). In this paper, we examine Mises's view on capital and suggest that it constitutes a bridge between Austrian and institutional economics. As an outflow of Mises's approach, an incipient financial approach may be discerned, an approach to capital that integrates concepts from financial theory into a broader view of capital that contains both institutional and Austrian elements.
BibTeX@article{Braun2016Ludwig, author = {Braun, Eduard and Lewin, Peter and Cachanosky, Nicolas}, title = {{Ludwig von Mises's Approach to Capital as a Bridge Between Austrian and Institutional Economics}}, journal = {Journal of Institutional Economics}, year = {2016}, volume = {12}, number = {4}, pages = {847--866}, doi = {10.1017/S1744137416000102} }An Empirical Application of the EVA Framework to Business Cycles
Review of Financial Economics, Vol. 30, No. 1, pp. 60–67
Following financial concepts like duration and economic value added (EVA®) we estimate the impact of interest rate movements on firms that are more and less roundabout . We find that firms that are more roundabout, that is, work with expected cash‐flows with higher duration , are more sensitive to interest rate movements. To the extent that monetary policy is able to move the discount rate used by investors, monetary policy changes the relative present value of any investment project and therefore affects resource allocation. We show evidence that this effect is present in the U.S. in the years prior to the subprime crisis.
BibTeX@article{Cachanosky2016Empirical, author = {Cachanosky, Nicolas and Lewin, Peter}, title = {{An Empirical Application of the EVA Framework to Business Cycles}}, journal = {Review of Financial Economics}, year = {2016}, volume = {30}, number = {1}, pages = {60--67}, doi = {10.1016/j.rfe.2016.06.006} }Indirectly Productive Entrepreneurship
Journal of Entrepreneurship and Public Policy, Vol. 5, No. 2, pp. 161–175
Since Baumol (1990), the economic literature has distinguished between two broad categories of entrepreneurship: productive and unproductive. The purpose of this paper is to introduce another subcategory: indirectly productive entrepreneurship. Sometimes, profit-seeking entrepreneurs allocate their talents to indirectly productive activities to mitigate the new costs market participants endure as a result of a government regulation. The resources used to mitigate these costs must be diverted from other uses. – This paper uses the example of cell phone storage outside New York City’s high schools to illustrate an indirectly productive entrepreneurial activity that mitigates the inefficiencies or costs created by a regulation. These costs and the resulting entrepreneurship would not have arisen absent the regulation. – These profit opportunities do not result from market entrepreneurial errors or successes but emerge from inefficiencies or unintended consequences produced by government regulations. When evaluating such entrepreneurship, the question is whether such regulation is desirable from an efficiency viewpoint because such entrepreneurship, while making such regulation less inefficient or less costly, diverts resources from other lines of production. – This paper identifies a new category of entrepreneurship: indirectly productive entrepreneurship. This paper also shows that government regulation often deters productive entrepreneurship. However, under some circumstances, regulation can indirectly encourage productive entrepreneurship by creating artificial profit opportunities that would not have existed otherwise.
BibTeX@article{Padilla2016Indirectly, author = {Padilla, Alexandre and Cachanosky, Nicolas}, title = {{Indirectly Productive Entrepreneurship}}, journal = {Journal of Entrepreneurship and Public Policy}, year = {2016}, volume = {5}, number = {2}, pages = {161--175}, doi = {10.1108/JEPP-03-2015-0016} }A Financial Framework for Understanding Macroeconomic Cycles: The Time Structure of Production Is Relevant
Journal of Financial Economic Policy, Vol. 8, No. 2, pp. 268–280
Purpose A comprehensive understanding business cycles needs to account not only for the allocation of resources over time but also for resource allocation across industries at any point in time. But to properly understand how these “time-distortions” take place and how the price mechanisms that drive them work, a clear and well-defined conceptualization of the “average length” of the structure of production is required. The authors use insights provided by Macaulay’s duration and Hicks’s average period to show that financial duration and related concepts have a direct connection to macroeconomic stability. Design/methodology/approach This study uses a theoretical and conceptual approach. It first presents the connection between average period of production and financial duration and then compares and applies this to macroeconomic business cycle theories. Findings This study points to important implications for macroeconomic policy. It not only claims that a low interest rate contributes to the creation of asset bubbles but also shows the market mechanism through which the real sector is affected. The application of financial concepts to macroeconomic cycles shows the price mechanism through which resources are allocated across industries. Originality/value The financial approach we offer to business cycles is fairly unexplored. As such, this paper offers a novel conceptual and theoretical framework for business cycles.
BibTeX@article{Lewin2016Financial, author = {Lewin, Peter and Cachanosky, Nicolas}, title = {{A Financial Framework for Understanding Macroeconomic Cycles: The Time Structure of Production Is Relevant}}, journal = {Journal of Financial Economic Policy}, year = {2016}, volume = {8}, number = {2}, pages = {268--280}, doi = {10.1108/JFEP-07-2015-0041} }Financial Foundations of Austrian Business Cycle Theory
Studies in Austrian Macroeconomics (Advances in Austrian Economics), Vol. 20, pp. 15–44
In this paper, we study financial foundations of Austrian business cycle theory (ABCT). By doing this, we (1) clarify ambiguous and controversial concepts like roundaboutness and average period of production, (2) we show that the ABCT has strong financial foundations (consistent with its microeconomic foundations), and (3) we offer examples of how to use the flexibility of this approach to apply ABCT to different contexts and scenarios.
BibTeX@article{Cachanosky2016Financial, author = {Cachanosky, Nicolas and Lewin, Peter}, title = {{Financial Foundations of Austrian Business Cycle Theory}}, journal = {Studies in Austrian Macroeconomics (Advances in Austrian Economics)}, year = {2016}, volume = {20}, pages = {15--44}, doi = {10.1108/S1529-213420160000020002} }Argentina's Post 2001 Economy and the 2014 Default
The Quarterly Review of Economics and Finance, Vol. 60, pp. 70–80
BibTeX@article{Cachanosky2016Argentina, author = {Cachanosky, Nicolas and Thomas, Carolyn}, title = {{Argentina's Post 2001 Economy and the 2014 Default}}, journal = {The Quarterly Review of Economics and Finance}, year = {2016}, volume = {60}, pages = {70--80}, doi = {10.1016/j.qref.2015.08.002} }Monetary Policy, the Composition of GDP, and Crisis Duration in Europe
Global Economic Review, Vol. 45, No. 2, pp. 206–219
This paper analyzes the effects of changes in interest rates on the composition of production in 10 European countries during the boom period of the 2000s. We find that output elasticity differs across industries and across countries for similar industries. The paper suggests that in the run-up to the 2008 crisis, the European Central Bank's low interest rate policy affected the allocation of resources across industries. This may explain the sluggish overall recovery from the crisis in Europe.
BibTeX@article{Hoffmann2016Monetary, author = {Hoffmann, Andreas and Cachanosky, Nicolas}, title = {{Monetary Policy, the Composition of GDP, and Crisis Duration in Europe}}, journal = {Global Economic Review}, year = {2016}, volume = {45}, number = {2}, pages = {206--219}, doi = {10.1080/1226508X.2015.1137484} }- 2015
Fiscal Policy and Crowding Out Effects in Capital Based Macroeconomics with Idle Resources
Journal of Private Enterprise, Vol. 30, No. 4, pp. 81–95
BibTeX@article{Ravier2015Fiscal, author = {Ravier, Adrián O. and Cachanosky, Nicolas}, title = {{Fiscal Policy and Crowding Out Effects in Capital Based Macroeconomics with Idle Resources}}, journal = {Journal of Private Enterprise}, year = {2015}, volume = {30}, number = {4}, pages = {81--95}, url = {http://journal.apee.org/index.php?title=Parte6_Journal_of_Private_Enterprise_vol_30_no_4.pdf} } U.S. Monetary Policy's Impact on Latin America's Structure of Production (1960–2010)
Latin American Journal of Economics, Vol. 52, No. 1, pp. 95–116
BibTeX@article{Cachanosky2015Monetary, author = {Cachanosky, Nicolas}, title = {{U.S. Monetary Policy's Impact on Latin America's Structure of Production (1960–2010)}}, journal = {Latin American Journal of Economics}, year = {2015}, volume = {52}, number = {1}, pages = {95--116}, doi = {10.7764/LAJE.52.1.95} }Expectations in Austrian Business Cycle Theory: Market Share Matters
The Review of Austrian Economics, Vol. 28, No. 2, pp. 151–165
Implications of Machlup's Interpretation of Mises's Epistemology
Journal of the History of Economic Thought, Vol. 37, No. 1, pp. 111–138
We argue that Fritz Machlup’s (1995) interpretation of Mises’s epistemology is at least as, if not more, plausible than Murray N. Rothbard’s (1957) interpretation. The implications of Machlup’s interpretation of Mises and of Austrian epistemology affect Austrians and non- Austrians in their academic interaction. Machlup’s interpretation shows that Austrian epistemology is well grounded in post-Popperian epistemology and that most criticisms of Austrian economics based on its aprioristic character are misplaced. Furthermore, Machlup’s interpretation provides us with a setting to rebuild the academic interaction between Austrians and non-Austrians that was characteristic of the early twentieth century.
BibTeX@article{Zanotti2015Implications, author = {Zanotti, Gabriel J. and Cachanosky, Nicolas}, title = {{Implications of Machlup's Interpretation of Mises's Epistemology}}, journal = {Journal of the History of Economic Thought}, year = {2015}, volume = {37}, number = {1}, pages = {111--138}, doi = {10.1017/S1053837214000777} }A Proposal of Monetary Reform for Argentina: Flexible Dollarization and Free Banking
The Independent Review, Vol. 19, No. 3, pp. 397–426
BibTeX@article{Cachanosky2015Proposal, author = {Cachanosky, Nicolas and Ravier, Adrián O.}, title = {{A Proposal of Monetary Reform for Argentina: Flexible Dollarization and Free Banking}}, journal = {The Independent Review}, year = {2015}, volume = {19}, number = {3}, pages = {397--426}, url = {http://www.independent.org/publications/tir/article.asp?a=1032} }- 2014
Roundaboutness is not a Mysterious Concept: A Financial Application to Capital Theory
Review of Political Economy, Vol. 26, No. 4, pp. 648–665
We apply the EVA terminology to the concepts of roundaboutness and average period of production in capital theory. By doing this we show that these terms have a clear and well understood financial interpretation. A financial application to capital theory helps to clarify obscure and controversial economic terms. We then extend our financial interpretation of roundaboutness and average period of production to the Austrian business cycle theory and show how this approach can be used to shed light on the subprime crisis.
BibTeX@article{Cachanosky2014Roundaboutness, author = {Cachanosky, Nicolas and Lewin, Peter}, title = {{Roundaboutness is not a Mysterious Concept: A Financial Application to Capital Theory}}, journal = {Review of Political Economy}, year = {2014}, volume = {26}, number = {4}, pages = {648--665}, doi = {10.1080/09538259.2014.957475} } The Mises-Hayek Business Cycle Theory, Fiat Currencies, and Open Economies
The Review of Austrian Economics, Vol. 27, No. 3, pp. 281–299
BibTeX@article{Cachanosky2014Mises, author = {Cachanosky, Nicolas}, title = {{The Mises-Hayek Business Cycle Theory, Fiat Currencies, and Open Economies}}, journal = {The Review of Austrian Economics}, year = {2014}, volume = {27}, number = {3}, pages = {281--299}, doi = {10.1007/s11138-012-0188-2} }The Effects of U.S. Monetary Policy in Colombia and Panama (2002–2007)
The Quarterly Review of Economics and Finance, Vol. 54, No. 3, pp. 428–436
BibTeX@article{Cachanosky2014Effects, author = {Cachanosky, Nicolas}, title = {{The Effects of U.S. Monetary Policy in Colombia and Panama (2002–2007)}}, journal = {The Quarterly Review of Economics and Finance}, year = {2014}, volume = {54}, number = {3}, pages = {428--436}, doi = {10.1016/j.qref.2014.03.003} }Hayek's Rule, NGDP Targeting, and the Productivity Norm: Theory and Application
Journal of Stock & Forex Trading, Vol. 3, No. 2, pp. 1–9
The 2008 crisis demonstrated that, absent inflationary pressures, significant economic stress can occur as a consequence of loose monetary policy. This scenario raises the question as to whether there is a better alternative to price stability as a guiding principle for monetary policy. In this paper, I explore the theoretical insights of the productivity norm, its superiority to price stability as the focus of monetary policy, and the challenges of applying such principles by central banks.
BibTeX@article{Cachanosky2014Hayek, author = {Cachanosky, Nicolas}, title = {{Hayek's Rule, NGDP Targeting, and the Productivity Norm: Theory and Application}}, journal = {Journal of Stock \& Forex Trading}, year = {2014}, volume = {3}, number = {2}, pages = {1--9}, doi = {10.4172/2168-9458.1000121} }- 2013
Huerta de Soto's Concerted Expansion: A Prisoner's Dilemma in Free Banking?
Laissez-Faire, Vol. 38–39, pp. 1–6
BibTeX@article{Cachanosky2013Huerta, author = {Cachanosky, Nicolas}, title = {{Huerta de Soto's Concerted Expansion: A Prisoner's Dilemma in Free Banking?}}, journal = {Laissez-Faire}, year = {2013}, volume = {38--39}, pages = {1--6}, url = {http://laissezfaire.ufm.edu/index.php?title=LF_38.1&fullscreen=true} } - 2012
Mises on Fractional Reserves: A Review of Huerta de Soto's Argument
New Perspectives on Political Economy, Vol. 7, No. 2, pp. 203–230
BibTeX@article{Cachanosky2012Mises, author = {Cachanosky, Nicolas}, title = {{Mises on Fractional Reserves: A Review of Huerta de Soto's Argument}}, journal = {New Perspectives on Political Economy}, year = {2012}, volume = {7}, number = {2}, pages = {203--230}, url = {http://www.cevroinstitut.cz/upload/ck/files/Casopisy_clanky/12_05_NPPE_Vol7_06.pdf} } The Law of National Guaranteed Banks in Argentina (1887–1890): Free Banking Failure or Regulatory Failure?
The Independent Review, Vol. 16, No. 4, pp. 569–590
BibTeX@article{Cachanosky2012National, author = {Cachanosky, Nicolas}, title = {{The Law of National Guaranteed Banks in Argentina (1887–1890): Free Banking Failure or Regulatory Failure?}}, journal = {The Independent Review}, year = {2012}, volume = {16}, number = {4}, pages = {569--590}, url = {http://www.independent.org/publications/tir/article.asp?a=882} }- 2011
A Comment on Barnett and Block on Time Deposit and Bagus and Howden on Loan Maturity Mismatching
Journal of Business Ethics, Vol. 104, No. 2, pp. 219–221
BibTeX@article{Cachanosky2011Comment, author = {Cachanosky, Nicolas}, title = {{A Comment on Barnett and Block on Time Deposit and Bagus and Howden on Loan Maturity Mismatching}}, journal = {Journal of Business Ethics}, year = {2011}, volume = {104}, number = {2}, pages = {219--221}, doi = {10.1007/s10551-011-0900-3} } Calculation and Equilibrium Problems in Coase Theorem
Quarterly Journal of Austrian Economics, Vol. 14, No. 1, pp. 63–77
BibTeX@article{Cachanosky2011Calculation, author = {Cachanosky, Nicolas}, title = {{Calculation and Equilibrium Problems in Coase Theorem}}, journal = {Quarterly Journal of Austrian Economics}, year = {2011}, volume = {14}, number = {1}, pages = {63--77}, url = {http://mises.org/journals/qjae/pdf/qjae14_1_4.pdf} }- 2010
The Endogenous Stability of Free Banking: Crisis as an Exogenous Phenomenon
New Perspectives on Political Economy, Vol. 6, No. 1, pp. 31–48
This article studies the main aspects of free banking to put forward the argument that such a system is endogenously stable and that financial crisis is an exogenous phenomenon. In support of this conclusion, it analyzes the cases of bank runs, concerted expansion and how free banking would affect business cycles according to different schools of thought. The article concludes that money can efficiently be a market phenomenon outside the state.
BibTeX@article{Cachanosky2010Endogenous, author = {Cachanosky, Nicolas}, title = {{The Endogenous Stability of Free Banking: Crisis as an Exogenous Phenomenon}}, journal = {New Perspectives on Political Economy}, year = {2010}, volume = {6}, number = {1}, pages = {31--48}, doi = {10.62374/0469ve41} } The Austrian School and Game Theory: An Analysis of Spontaneous Orders
Revista de Instituciones, Ideas y Mercados, No. 52, pp. 52–58
BibTeX@article{Cachanosky2010Austrian, author = {Cachanosky, Nicolas}, title = {{The Austrian School and Game Theory: An Analysis of Spontaneous Orders}}, journal = {Revista de Instituciones, Ideas y Mercados}, year = {2010}, number = {52}, pages = {52--58}, url = {https://www.eseade.edu.ar/wp-content/uploads/2016/08/52_2_cachanosky.pdf} }- 2009
The Definition of Inflation According to Mises: Implications for the Debate on Free Banking
Libertarian Papers, Vol. 1, No. 9, pp. 1–7
BibTeX@article{Cachanosky2009Definition, author = {Cachanosky, Nicolas}, title = {{The Definition of Inflation According to Mises: Implications for the Debate on Free Banking}}, journal = {Libertarian Papers}, year = {2009}, volume = {1}, number = {9}, pages = {1--7}, url = {http://libertarianpapers.org/articles/2009/lp-1-43.pdf} }
Book chapters
- Forthcoming
Hayek's Two Epistemologies: Economics and Sciences in General
In Candela, R. (ed.), UFM Companion to F. A. Hayek
BibTeX@incollection{ZanottiForthcomingHayek, author = {Zanotti, Gabriel J. and Cachanosky, Nicolas}, title = {{Hayek's Two Epistemologies: Economics and Sciences in General}}, booktitle = {{UFM Companion to F. A. Hayek}}, editor = {Candela, R.}, year = {forthcoming} } Hayek's Average Period of Production: A Step Forward and a Missed Opportunity
In Candela, R. (ed.), UFM Companion to F. A. Hayek
BibTeX@incollection{CachanoskyForthcomingHayek, author = {Cachanosky, Nicolas and Lewin, Peter}, title = {{Hayek's Average Period of Production: A Step Forward and a Missed Opportunity}}, booktitle = {{UFM Companion to F. A. Hayek}}, editor = {Candela, R.}, year = {forthcoming} }- 2023
Accounting and Finance: Capital and Cost in Economics
In Horwitz, S., and Rouanet, L. (eds.), A Research Agenda for Austrian Economics
BibTeX@incollection{Lewin2023Accounting, author = {Lewin, Peter and Cachanosky, Nicolas}, title = {{Accounting and Finance: Capital and Cost in Economics}}, booktitle = {{A Research Agenda for Austrian Economics}}, editor = {Horwitz, S. and Rouanet, L.}, year = {2023}, url = {https://www.e-elgar.com/shop/usd/a-research-agenda-for-austrian-economics-9781800882256.html} } - 2022
Can Cryptocurrencies Become a Commonly Accepted Means of Exchange?
In Caton, J. (ed.), The Economics of Blockchain and Cryptocurrency
BibTeX@incollection{Cachanosky2022Cryptocurrencies, author = {Cachanosky, Nicolas}, title = {{Can Cryptocurrencies Become a Commonly Accepted Means of Exchange?}}, booktitle = {{The Economics of Blockchain and Cryptocurrency}}, editor = {Caton, J.}, year = {2022}, url = {https://www.e-elgar.com/shop/usd/the-economics-of-blockchain-and-cryptocurrency-9781800882331.html} } Capital Theory and the Theory of the Firm
In Bylund, P. (ed.), A Modern Guide to Austrian Economics
BibTeX@incollection{Lewin2022Capital, author = {Lewin, Peter and Cachanosky, Nicolas}, title = {{Capital Theory and the Theory of the Firm}}, booktitle = {{A Modern Guide to Austrian Economics}}, editor = {Bylund, P.}, year = {2022}, url = {https://www.e-elgar.com/shop/gbp/a-modern-guide-to-austrian-economics-9781789904390.html} }- 2018
Unintended Consequences of ECB Policies in Europe's Periphery
In Godart-van der Kroon, A., and Vonlanthen, P. (eds.), Springer, Banking and Monetary Policy from the Perspective of Austrian Economics
BibTeX@incollection{Hoffmann2018Unintended, author = {Hoffmann, Andreas and Cachanosky, Nicolas}, title = {{Unintended Consequences of ECB Policies in Europe's Periphery}}, booktitle = {{Banking and Monetary Policy from the Perspective of Austrian Economics}}, editor = {Godart-van der Kroon, A. and Vonlanthen, P.}, publisher = {Springer}, year = {2018}, url = {https://www.springer.com/us/book/9783319758169} } - 2017
El Deterioro Económico de Argentina Durante el Gobierno Kirchner-Kirchner
In Arqueros, C., and Iriarte, A. (eds.), Instituto Res República and Instituto del Desarrollo, Chile y América Latina: Crisis de las Izquierdas del Siglo XXI
BibTeX@incollection{Cachanosky2017Deterioro, author = {Cachanosky, Nicolas}, title = {{El Deterioro Económico de Argentina Durante el Gobierno Kirchner-Kirchner}}, booktitle = {{Chile y América Latina: Crisis de las Izquierdas del Siglo XXI}}, editor = {Arqueros, C. and Iriarte, A.}, publisher = {Instituto Res República and Instituto del Desarrollo}, year = {2017} } Economic Value Added: Una Aplicación Financiera al Análisis Económico
In Giménez Bonet, W., and Tournisov, A. (eds.), Editorial Episteme, ch. 3, Libertad y Convicciones: Ensayos en Honor al Dr. Juan Carlos Cachanosky
BibTeX@incollection{Cachanosky2017Economicb, author = {Cachanosky, Nicolas}, title = {{Economic Value Added: Una Aplicación Financiera al Análisis Económico}}, booktitle = {{Libertad y Convicciones: Ensayos en Honor al Dr. Juan Carlos Cachanosky}}, editor = {Giménez Bonet, W. and Tournisov, A.}, publisher = {Editorial Episteme}, chapter = {3}, year = {2017}, url = {https://www.amazon.com/dp/B07477VJT8} }- 2015
Employment Visas: An International Comparison
In Powell, B. (ed.), Oxford University Press, ch. 5, pp. 92–142, The Economics of Immigration: Market-Based Approaches, Social Science, and Public Policy
BibTeX@incollection{Padilla2015Employment, author = {Padilla, Alexandre and Cachanosky, Nicolas}, title = {{Employment Visas: An International Comparison}}, booktitle = {{The Economics of Immigration: Market-Based Approaches, Social Science, and Public Policy}}, editor = {Powell, B.}, publisher = {Oxford University Press}, chapter = {5}, year = {2015}, pages = {92--142}, url = {http://www.amazon.com/dp/0190258799} } - 2012
Una Introducción a la Economía Clásica
In Ravier, A. (ed.), Unión Editorial, ch. VIII, pp. 147–166, Lecturas de Historia del Pensamiento Económico
BibTeX@incollection{Cachanosky2012Introduccion, author = {Cachanosky, Nicolas}, title = {{Una Introducción a la Economía Clásica}}, booktitle = {{Lecturas de Historia del Pensamiento Económico}}, editor = {Ravier, A.}, publisher = {Unión Editorial}, chapter = {VIII}, year = {2012}, pages = {147--166} }
Non-refereed articles
- 2021
The Austrian School: 150 Years
LIBERTAS: Segunda Época, Vol. 6, No. 1, pp. 1–11
BibTeX@article{Cachanosky2021Austrian, author = {Cachanosky, Nicolas}, title = {{The Austrian School: 150 Years}}, journal = {LIBERTAS: Segunda Época}, year = {2021}, volume = {6}, number = {1}, pages = {1--11}, url = {https://journallibertas.com/files/2021/6.1%20-%2002%20-%20Cachanosky,%20N.%20-%20The%20Austrian%20School%20%28150%20Years%29.pdf} } Capital: Three-Dimensionally Speaking
LIBERTAS: Segunda Época, Vol. 6, No. 1, pp. 1–11
BibTeX@article{Lewin2021Capital, author = {Lewin, Peter and Cachanosky, Nicolas}, title = {{Capital: Three-Dimensionally Speaking}}, journal = {LIBERTAS: Segunda Época}, year = {2021}, volume = {6}, number = {1}, pages = {1--11}, url = {https://journallibertas.com/files/2021/6.1%20-%2005%20-%20Lewin%20and%20Cachanosky%20-%20Capital%20%28Three%20Dimensionally%20Speaking%29.pdf} }- 2019
What is so Extreme About Mises's Extreme Apriorism: Reply to Scott Scheall
LIBERTAS: Segunda Época, Vol. 4, No. 1, pp. 1–6
BibTeX@article{Zanotti2019Extreme, author = {Zanotti, Gabriel J. and Cachanosky, Nicolas}, title = {{What is so Extreme About Mises's Extreme Apriorism: Reply to Scott Scheall}}, journal = {LIBERTAS: Segunda Época}, year = {2019}, volume = {4}, number = {1}, pages = {1--6}, url = {http://www.journallibertas.com/uploads/7/4/7/8/7478847/libertas.4.1_-_05.zanotti_and_cachanosky.pdf} } - 2017
Economic and Philosophical Implications of Hayek's Knowledge Problem
LIBERTAS: Segunda Época, Vol. 2, No. 1, pp. 67–79
BibTeX@article{Cachanosky2017Economica, author = {Cachanosky, Nicolas and Padilla, Alexandre}, title = {{Economic and Philosophical Implications of Hayek's Knowledge Problem}}, journal = {LIBERTAS: Segunda Época}, year = {2017}, volume = {2}, number = {1}, pages = {67--79}, url = {http://www.journallibertas.com/uploads/7/4/7/8/7478847/libertas.2.1_-_04.cachanosky_n.___padilla_a..pdf} } Monetary Policy in India and the U.S.: Is the Taylor Rule Relevant?
International Review of Business & Economics, Vol. 1, No. 1
BibTeX@article{Sawhney2017Monetary, author = {Sawhney, Bansi and Kulkarni, Kishore and Cachanosky, Nicolas}, title = {{Monetary Policy in India and the U.S.: Is the Taylor Rule Relevant?}}, journal = {International Review of Business \& Economics}, year = {2017}, volume = {1}, number = {1}, url = {https://static1.squarespace.com/static/575f50868259b52cea334ff2/t/583f28656b8f5b2d03782196/1480534119094/Sawhney.Kulkarni.Cachanosky.pdf} }- 2016
La Matemática y la Tradición Austriaca: Respuesta a Rafael Beltramino
LIBERTAS: Segunda Época, Vol. 1, No. 2, pp. 95–103
BibTeX@article{Cachanosky2016Matematica, author = {Cachanosky, Nicolas}, title = {{La Matemática y la Tradición Austriaca: Respuesta a Rafael Beltramino}}, journal = {LIBERTAS: Segunda Época}, year = {2016}, volume = {1}, number = {2}, pages = {95--103}, url = {http://www.journallibertas.com/uploads/7/4/7/8/7478847/libertas.1.2_-_08.cachanosky_nicolas.pdf} } Problemas Matemáticos en la Teoría de Precios
LIBERTAS: Segunda Época, Vol. 1, No. 1, pp. 11–27
BibTeX@article{Cachanosky2016Problemas, author = {Cachanosky, Juan C. and Cachanosky, Nicolas}, title = {{Problemas Matemáticos en la Teoría de Precios}}, journal = {LIBERTAS: Segunda Época}, year = {2016}, volume = {1}, number = {1}, pages = {11--27}, url = {http://www.journallibertas.com/uploads/7/4/7/8/7478847/libertas.1.1_-_03.cachanosky_j._c.___cachanosky_n..pdf} }