Is technical knowledge the key driver of economic growth?
byAccording to some commentators such as Nobel Laureate in Economics Paul Romer, technical knowledge is key to economic growth. We hold that if this…
Gold Could Offer a Way out of Switzerland’s Failing Inflationist Experiment
byNever mind that the US Treasury’s indictment late last year of Switzerland as a currency manipulator rested on some flawed evidence and does not…
The ECB Is Playing a Dangerous Game with “Collective Action Clauses” on Bonds
byThere is a clause to European bond sales called a collective action clause. In fact, “all bonds issued by Eurozone member states with maturities…
Global trade in 2021
bySo long as the fiat-based monetary system continues with accelerated money-printing, the US trade deficit will continue to widen. This is due to the…
Relation between minimum wage and unemployment
byOn January 21 2021, the US President Joe Biden, through an executive order announced an increase in workers minimum wage from $7.25 per hour…
Deflation: Friend or Foe?
byby Luis Pablo de la Horra Deflation is the most feared economic phenomenon of our time. The reason behind this a priori irrational fear (why should…
Low Rates and Limited Liability Mean Hot Markets
byWhat clear-eyed mortgage underwriter would sign on to a thirty-year loan at less than 3 percent? After all, in Las Vegas, for instance, the unemployment…
Why the idea of an optimum growth rate of money supply is questionable
byBy Dr Frank Shostak Most economists hold that a growing economy requires a growing money stock, on the grounds that growth gives rise to…
The Upside of Lockdowns: More Saving
bySomething good is coming out of the covid lockdowns. Economist David Rosenberg released a special report via the eponymous Rosenberg Research, concluding “the pre-COVID-19…
Time preference – and interest rate determination
byBy Dr Frank Shostak A common conception is that the central bank is a key factor in the determination of interest rates. On this…