Can deflation undo the damage of inflation?
In our various writings, we have suggested that loose monetary policy of the central bank, which amounts to the lowering of interest rates and…
Why the policy of price stability weakens the process of real wealth formation
There is almost complete unanimity among economists that the most important role of the central bank is to attain price level stability. It is…
Can sophisticated technology prevent severe economic slump?
Most economic commentators are likely to agree that in relation to the period prior to the Great Depression, the present world is many times…
Why gold standard is not conducive of boom-bust cycles?
According to some commentators on the gold standard, an increase in the supply of gold generates similar distortions that money out of “thin…
Does economic growth cause inflation?
Most experts are of the view that as the economy gains strength the Fed must step in at some stage and introduce a tighter…
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…