Technology shocks and boom bust cycles
By Dr Frank Shostak Some economists such as Finn Kydland and Edward C. Prescott (KP), the 2004 Nobel Laureates in economics, are of the…
Why increases in money supply can’t cause economic growth?
By Dr Frank Shostak The view that an increase in the money supply could revive an economy is based on the idea that money…
Is the US economy headed for a bust?
By Dr Frank Shostak There is a high likelihood that due to the past large decline in the yearly growth rate of the money…
Is deflation bad for the economy?
By Dr Frank Shostak It is maintained by most experts that a general fall in prices labelled as deflation is “bad news” for the…
The true tax reduction is reduction in government outlays
By Dr Frank Shostak Projects that the government undertakes are likely to be of a questionable nature. The fact that the private sector did…
Can the market economy be trusted?
By Dr Frank Shostak Some commentators are of the view that one cannot trust the market economy, which is seen as inherently unstable. If…
Why the neutral interest rate cannot be established
By Dr Frank Shostak Most commentators are of the view that what prevents the attainment of price stability is the deviation of the policy…
What causes stagflation?
By Dr Frank Shostak In the late 1960’s Edmund Phelps and Milton Friedman (PF) challenged the popular view that there can be a sustainable…
Making sense of historical data
By Dr Frank Shostak In order to make the data “talk,” economists utilize a range of statistical methods that vary from highly complex models…
Theory and historical data
By Dr Frank Shostak According to the leader of the monetarists school Milton Friedman our knowledge of the world of economics is elusive. Consequently,…