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…
Can 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,…
Why 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,…
Savings 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…