Why velocity of money and the purchasing power of money are not related?
Some commentators are of the view that when the velocity of money rises, all other thing being equal, the buying power of money…
Money growth and inflation – is there a connection?
According to many mainstream economists, a lack of good correlation between the monetary growth and the growth rate of various price indexes casts doubt…
Easy monetary policy and the pattern of consumption
With meagre resources at his disposal, an individual is likely to allocate these resources i.e. his wealth towards essentials such as food, clothing…
What is the relation between supply and demand for money?
For most economists there is the need to keep the so-called economy along the path of a stable economic growth and a stable…
Why an increase in capital goods may not always be good for economic prosperity
The annual rate for US non-military capital goods orders excluding aircraft fell to 1.9% in September from 7.8% in August to stand at $69.6 billion. Observe that…
Statistical analyses and facts of reality
According to modern economics, various ideas that we have established about the world of economics emanates from historical data. By inspecting the data, an…
Is technical knowledge the key driver of economic growth?
According to this year Nobel Prize winner in economics, Paul Romer, the technical knowledge that spills over into the creation of new products…
Does balance of payments determine foreign currency exchange rate?
According to popular thinking, a key factor in the foreign currency exchange rate determination is the state of the balance of payments. Following this…
Can consumer surveys help ascertaining the future course of an economy?
In order to gain insight into the future state of an economy, many economists refer to a variety of consumer and business surveys….
Strong GDP data and individuals’ wellbeing
In the New York Times September 14 2018 in an article – We’re Measuring The Economy All Wrong, the writer of the article David…