What Babysitting Teaches Us About Monetary Policy

When a babysitting cooperative tried to solve some unexpected problems, its response resembled monetary policy.

Weekly Roundup: From Wimbledon to Estonia

Our weekly roundup includes stories from everyday economics that relate to the market, the minimum wage, the price system and productivity & human capital.

The Monetary Policy Mistakes of a Babysitting Co-op

There once was a French economist whose name was Say. Proclaiming that “Supply Creates Its Own Demand,” Jean-Baptiste Say (1767-1832) entered economic history with Say’s Law. All he meant was that workers are also consumers. The money you receive for producing a good or a service…