Why perfect competition is not so perfect
According to the popular view, a proper competitive environment must emulate the perfect competition model. In the world of perfect competition, a market is…
Money and the stock market: is there any relation?
Is it true that changes in money supply are an important driving force behind changes in the stock price indexes? Intuitively it makes sense…
Is the fall in prices bad news?
Contrary to the popular way of thinking, we suggest that there is nothing wrong with declining prices. What signifies industrial market economy under a…
Are inflationary expectations the heart of inflation?
For most economic commentators the underlying driving force of inflation is inflationary expectations[1]. For instance, if there is a sharp increase in the price…
The fallacy of insufficient demand
Following the ideas of Keynes and Friedman, most mainstream economists associate economic growth with increases in the demand for goods and services. Both Keynes…
The essence of profit
In most cultures, profit is seen as the outcome of exploitation of some individuals by some other individuals. Hence, anyone who is seen as…
Is the high level of debt a major economic risk factor?
Many economic commentators regard high level of debt relative to GDP as a major risk factor as far as economic health is concerned. This…
The fallacy of insufficient demand
Following the ideas of Keynes and Friedman, most mainstream economists associate economic growth with increases in the demand for goods and services. Both Keynes…
Pool of funding the heart of economic growth
Most experts are of the view that massive monetary pumping by the US central bank, the Fed, during the 2008 financial crisis saved the…
Why the positive time preference theory valid despite data contradiction?
In the Mises Institute daily articles column the Wire on November 21 2017 Doug French raised very important issue of negative interest rates. He…