Money out of “thin air” and economic cycles
According to the Nobel Laureate in Economics, Milton Friedman, the root of the business cycle is the fluctuations in the growth rate of money…
Does the existence of unemployed resources justify easy money?
Once an economy falls into recession many commentators tend to express concern that as a result of the economic slump there are now…
How magical is the Keynesian multiplier?
For most economists and financial commentators the heart of economic growth is the increase in the demand for goods and services. The view is…
Does the price of oil determine general increases in the prices of goods and services?
A very good visual correlation between the yearly percentage change in the consumer price index (CPI) and the yearly percentage change in the price…
Rapid money growth and inflation – is there a connection?
In the article “Rapid money supply growth does not cause inflation” written by Richard Vague at the Institute for New Economic Thinking, December 2,2016…
Fed’s policy of price stability results in more instability
For most economists the key factor that sets the foundation for healthy economic fundamentals is a stable price level as depicted by the consumer…
What should be the correct money supply growth rate?
Most economists believe that a growing economy requires a growing money stock, on grounds that growth gives rise to a greater demand for money,…
Should diversification be primary consideration in asset allocations?
Recently one of the most successful Wall Street investors Warren Buffet urged investors to forget about active investment and simply put their money into…
How macro-economic data helps Government and Central Bank weaken wealth formation
It is common for commentators and economists in their discussions to continuously refer to something called the “economy” – which sometimes performs well and…
Balance of payments and the exchange rate: is there a connection?
According to conventional analysis, a key factor in exchange rate determination is the state of the balance of payments. It is held that as…