Why assessing business cycles using the NBER approach is questionable
Most economists are of the view that by means of economic indicators it is possible to identify early warnings regarding an upcoming recession or…
Should forecasting accuracy determine the acceptance of a theory?
In order to establish the state of the economy economists employ various theories. Yet what are the criteria for how they decide whether…
Do we need government to promote innovation and economic growth?
According to Mariana Mazzucato, the RM Phillips Professor in the Economics of Innovation at the University of Sussex, government is an important factor…
Why looking at the data without a theory cannot tell us much
For most so-called practical economists, information regarding the state of an economy is derived from the data. Thus if an economic statistic such…
Does the Friedman’s plucking model refute Mises’s boom-bust cycle theory?
According to an article in Bloomberg on November 5, 2019, Milton Friedman’s plucking theory seems to be vindicated. According to Friedman there appears to…
Can easy monetary policies help to absorb idle resources?
It is widely believed that resources that are utilized in normal times to promote economic prosperity become underutilized during recessions. Some experts hold…
Are we heading for a liquidity trap?
With interest rates in many countries close to zero or even negative some commentators are of the view that monetary policy of the…
How the GDP framework creates the illusion that by means of money pumping the central bank can grow an economy
In response to a weakening in the yearly growth rate of key economic indicators such as industrial production and real gross domestic product…
Do banks require savings to accommodate demand for lending?
There is an emerging view held by many commentators that it is banks and not the central bank that are key for the expansion…
How fractional reserve banking contributes to increases in money supply
Some commentators consider fractional reserve banking as a major vehicle for the expansion in the money supply growth rate. What is the nature…