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…
How the Fed operates
We are often asked about the mechanisms by which the US Federal Reserve Board (the Fed) influences the level of US interest rates and…
Central banks and money creation is there any connection?
According to traditional economics textbooks, the current monetary system amplifies the initial monetary injections of money. The popular story goes as follows: if the…
Pool of wealth and economic bust
It has now become settled wisdom that the massive monetary pumping by the US central bank during and after the 2008 financial crisis saved…