The growing pool of real savings permits the illusion that central bank can cause economic growth
Many commentators are of the view that the US central bank should pursue policies that will prevent the possible decline of the economy…
Should the Fed print money to accommodate demand for money?
For most economists and commentators the main role of the Fed is to keep the supply and demand for money in equilibrium. Whenever an…
Does subjective valuation mean arbitrary valuation?
Why do individuals pay much higher prices for some goods versus other goods? The common reply to this is the law of supply and…
Savings as the engine of economic growth
Most economists concur with the view that what keeps the economy going is consumption expenditure. Furthermore, it is generally held that spending rather than…
Does it matter whether assumptions in economics are arbitrary?
Various assumptions employed by mainstream economists appear to be of an arbitrary nature. The assumptions seem to be detached from the real world. For…
Expectations and the Austrian Business Cycle Theory
According to the Austrian Business Cycle Theory (ABCT) the artificial lowering of interest rates by the central bank leads to a misallocation of resources…
Where the US dollar is heading against the Euro?
After closing at 1.051 at the end of December 2016, the price of the Euro in US dollar terms settled at 1.2321 at the…
Why Keynesian multiplier is an illusion
For most economists and financial commentators the heart of economic growth is the increase in the demand for goods and services. It is held…
Krugman dismisses that an increase in money supply causes inflation
In the New York Times article on March 27, 2018 – Immaculate inflation strikes again – Paul Krugman argues that those economists who are…
Why mainstream economics consistently fails to explain the occurrence of recessions?
In his article released on March 21 2018 – Economics failed us before the global crisis – Martin Wolf the economics editor of The…