Did money emerge as a result of a government ruling?
By Dr Frank Shostak By some theories such as the Modern Monetary Theory (MMT), money originated on account of the government decree. Money according…
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Can decline in money velocity offset the effect of money supply growth on price inflation?
By Dr Frank Shostak At the end of January, the yearly growth rate of our measure of US money supply (AMS) closed at 76.7%…
Read MoreIs technical knowledge the key driver of economic growth?
According to some commentators such as Nobel Laureate in Economics Paul Romer, technical knowledge is key to economic growth. We hold that if this…
Read MoreRelation between minimum wage and unemployment
On January 21 2021, the US President Joe Biden, through an executive order announced an increase in workers minimum wage from $7.25 per hour…
Read MoreWhy the idea of an optimum growth rate of money supply is questionable
By Dr Frank Shostak Most economists hold that a growing economy requires a growing money stock, on the grounds that growth gives rise to…
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Time preference – and interest rate determination
By Dr Frank Shostak A common conception is that the central bank is a key factor in the determination of interest rates. On this…
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Fiscal stimulus and economic growth
For most experts a key factor that policy makers should be watching is the ratio between actual real output and potential real output. The…
Read MoreThe importance of assumptions in economics
By Dr Frank Shostak Various assumptions employed by economists in their models appear to be of an arbitrary nature. The assumptions seem to be…
Read MoreDoes cost cutting undermine economic growth?
By Dr Frank Shostak By some commentators, cost cutting by companies in order to protect profits can in fact set in motion an economic…
Read MoreQuantitative methods in economics describe but do not explain
By Dr Frank Shostak Most economists regard the use of mathematical and statistical methods as the key towards understanding the complexities of economics. They…
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