Emotions versus reason in economics
By Dr Frank Shostak According to a relatively new field of economics called Behavioural Economics (BE), emotions play an important role in an individual’s…
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How increases in money supply cause economic bust
By Dr Frank Shostak The increase in the growth rate of the consumer price index (CPI) has fueled concerns that if the rising trend…
Read MoreProfits not risk drive entrepreneurs
By Dr Frank Shostak According to Modern Portfolio Theory (MPT), financial asset prices fully reflect all available and relevant information, and that any adjustment…
Read MoreWhy econometric models cannot ascertain facts of reality?
By Dr Frank Shostak While in the natural sciences a laboratory experiment can isolate various elements and their movements can be followed through, there…
Read MoreRelation between Inflation and Deflation
By Dr Frank Shostak For most commentators inflation is about persistent increases in the prices of goods and services. However, is this the case? …
Read MoreMonetary pumping and idle resources
By Dr Frank Shostak As a result of the recent strong stimulatory policies employed by the US government and the Fed, most commentators are…
Read MoreMonetary savings versus real savings
By Dr Frank Shostak According to the National Income and Product Accounts (NIPA) the US personal savings rate stood at 13.6% in February against…
Read MoreBiden’s economic stimulus plan an obstacle to US economic fundamentals
By Dr Frank Shostak On March 11, 2021, the US President Biden introduced his $1.9 trillion COVID-19 stimulus plan. The President also announced a…
Read MoreMonetary policy transparency, the monetary bubble and the likely economic bust ahead
By Dr Frank Shostak In an interview with National Public Radio’s “Morning Edition” program on Thursday March 25 2021, Fed Chair Jerome Powell said…
Read MoreWhy loose monetary policies cannot set real economic growth?
By Dr Frank Shostak Between January 1970 and December 2020 on average changes in money supply preceded by 14 months changes in real economic…
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