Assessing the long-term structural risk for China
After falling to 6.4% in Q1 2009 the yearly growth rate of China’s real GDP climbed to 12.2% by Q1 2010. Afterwards the yearly…
Why reduction in unemployment not the key for economic growth
The US unemployment rate stood at 4.3% in July against 4.4% in the month before. The number of unemployed stood at 6.981 million –…
Saving and money – what is the relationship?
Conventional wisdom says that savings is the amount of money left after monetary income was used for consumer outlays, implying that saving is synonymous…
Why US wages growth remains subdued?
The yearly growth rate of average hourly earnings in production and non-supervisory employment in the private sector eased to 2.3% in June from 2.4%…
Why profitability and not risk should be primary consideration in asset allocation
It is widely held that financial asset markets always fully reflect all available and relevant information, and that adjustment to new information is virtually…
Is the criteria for the model selection its predictive power?
In order to make the data “talk,” economists utilize a range of statistical methods that vary from highly complex models to a simple display…
The velocity of money myth
Effect of changes in money supply on economic activity and prices is a velocity of money. It is alleged that when the velocity…
ECOFLASH: Economy may force the Fed to reverse its interest rate stance
The Fed hiked interest rates for the second time this year, in a widely expected move on Wednesday June 14. The Federal Reserve’s Open Market…
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…