Can constant money growth rule prevent boom-bust cycles?
According to the Nobel Laureate in Economics, Milton Friedman, the key cause of the business cycles is the fluctuations in the growth rate of…
Why inflation is not about general increases in prices
For most commentators, inflation is about general increases in the prices of goods and services. From this, it is established that anything that contributes…
Is demand independent of production?
Following the ideas of John Maynard Keynes and Milton Friedman, many commentators associate economic growth with increases in the demand for goods and services….
Is diversification the heart of investment?
According to the Modern Portfolio Theory (MPT), financial asset prices always fully reflect all available and relevant information, and that any adjustment to…
Keynesian ideas can only make things worse
In the New York Times on September 8, 2020, Paul Krugman suggested that “The CARES Act, enacted in March, gave the unemployed an extra…
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…
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….
Cut 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…
Why 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….
How 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…