Statistics and the facts of economic reality
The government’s releases of various economic indicators such as GDP, CPI and unemployment receive wide coverage in the media. In a measured and…
Is deflation about general decline in prices?
For most experts deflation is bad news since it generates expectations for a decline in prices. Because of this it is held, consumers…
The balance of payments myth
In March, the US trade account balance stood at a deficit of $50 billion against a deficit of $49.28 billion in February and a…
Should the Fed tamper with the quantity of money?
Most economists are of the view that a growing economy requires a growing money stock, because economic growth gives rise to a greater…
The essence of goods prices determination
Why do individuals pay much higher prices for some goods versus other goods? The common reply to this is the law of supply…
Economic stability and economic growth
During the period 1920 to 1960, we can observe that the annual growth rate of production was more volatile than between the…
Subsistence fund the heart of economic growth
What characterizes the modern economy is its complex structure of production that seemingly generates an endless amount and a variety of goods. It…
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…