Neutral interest rate – the Fed’s impossible goal
It is widely accepted that by means of suitable monetary policies the US central bank can navigate the economy towards a growth path…
Can expansionary fiscal and monetary policies counter recessions?
When signs of economic weakness emerge, most economics experts are quick to embrace the ideas of John Maynard Keynes. For most economists…
What the shape of the yield spread implies?
A fall in the difference between the yield on the 10-year US T-Bond and the US 3-month Treasury bill into negative territory has…
The problem with Modern Monetary Theory
According to the Modern Money Theory (MMT), money is a thing that the State decides upon. Following the ideas of the German economist, Georg…
Changes in government deposits and money supply
The US debt ceiling suspension, signed in February 2018, expires at the beginning of March this year. Some commentators are of the view…
Importance of model building in economics
In the natural sciences, a laboratory experiment can isolate various elements and their movements. There is no equivalent in the discipline of economics….
Tax cuts without reducing government outlays is not possible
According to many economic experts and commentators, an effective way to generate economic growth is through the lowering of taxes. The lowering of…
Does transparent monetary policy lead to economic stability?
In his various writings, the champion of the monetarist school, Milton Friedman, argued that there is a variable time lag between changes in money…
The Difference between Money Supply & Liquidity
The US debt ceiling suspension, signed on February 2018, expires in March this year. According to some experts, the US Treasury will have to…
Why is savings not about money?
Conventional wisdom says that savings is the amount of money left after monetary income was used for consumer outlays, implying that saving is…