Why trade balance is not the essence of currency exchange rate determination
In July this year the US trade balance stood at a deficit of $63.6 billion against a deficit of $51 billion in July…
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Is laboratory in economics possible?
In the natural sciences, a laboratory experiment can isolate various elements and their movements. There is no equivalent in the discipline of economics….
Read MoreCut in government outlays is the true tax cut
We suggest that projects that government undertakes can be classified as wealth squandering. The fact that the private sector does not undertake these projects…
Read MoreWhy the policy of price stability leads to more instability
One of the duties that a central bank is expected to fulfill is to keep the general level of prices in the economy stable….
Read MoreHow Keynesian ideas continue to destroy the economy
As a result of the coronavirus pandemic most experts are of the view that it is the role of the government and central bank…
Read MoreCan an increase in the demand for money neutralize the effect of a corresponding increase in money supply?
According to popular thinking, not every increase in the supply of money will have an effect on the production of goods. For instance,…
Read MoreWhy the present monetary system is heading for a breakdown
Most economists hold that a growing economy requires a growing money stock, on grounds that growth gives rise to a greater demand for money,…
Read MoreSavings the heart of economic activity
It is held by most mainstream economists that spending is the heart of economic activity. Economic activity is depicted as a circular flow…
Read MoreImportance of a theory in economics
It is a common belief that sound economics must be based on facts and not on theoretical reasoning as such. Some commentators are…
Read MoreThe essence of inflation
The popular definition cannot explain why inflation is bad According to the popular way of thinking, inflation is defined as a general increase…
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