This will be my last post until 2013. I wish all my readers a prosperous 2013. My first posts on this blog looked at the Hayek-Keynes rap by EconStories (see here and here). EconStories have followed this up with an hilarious festive album of macro-follies - see video below (hat tip - Graeme Acheson).
According to Robert Shiller , speaking at Davos, Bitcoin is a perfect example of a bubble - story here . Shiller sees Bitcoin as a backwards step in the evolution of money. George Selgin , a free banker, takes an opposing view - click here . Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.