Milton Friedman’s guitar string boom-bust cycle theory
By Dr Frank Shostak It is popular in economics to employ metaphors in orders to provide support to a particular idea. For instance, some…
Dr Frank Shostak
Dr Frank Shostak is a leading Austrian economist and director of Applied Austrian School Economics Ltd, which aims to assess the direction of various markets using the Austrian School methodology. AASE aims to make Austrian economics accessible to businessmen.
Does a government budget surplus contribute to national savings?
By Dr Frank Shostak By popular thinking the budget deficit reduces national savings, whilst a budget surplus is seen as contributing to savings. National…
Do financial markets have superior knowledge?
By Dr Frank Shostak We suggest that what is labelled as financial markets are various individuals engaged in the buying and selling of financial…
Why recessions are not about declining GDP?
By Dr Frank Shostak Most economic commentators consider a weakening in economic statistics such as gross domestic product (GDP) as indicative of a weakening…
Economic growth and the stock market
By Dr Frank Shostak Most financial commentators are of the view that increases in the stock market strengthens economic growth. The reason being because…
The Keynesian multiplier – myth or reality?
By Dr Frank Shostak For most economists and financial commentators, the heart of economic growth is the demand for goods and services. It is…
Are inflationary expectations the key cause for general rise in prices?
By Dr Frank Shostak By the popular way of thinking, the key cause that sets a general increase in prices is inflationary expectations. For…
Tariffs wealth destroyers
By Dr Frank Shostak On January 31, 2025, US President Donald Trump announced that he would impose a 25 percent tariff on imports from Canada…
Purchasing power the essence of the currency exchange rate determination
By Dr Frank Shostak Often various factors are perceived to be important in determining a currency rate of exchange. For instance, for some commentators…
Should central banks accommodate increases in demand for money?
By Dr Frank Shostak Could an increase in the demand for money counteract the effect of an increase in the money supply? Now, an…