Why the free market is the best defence against the money multiplier
Some commentators are of the view that the present monetary framework is instrumental for the emergence of the so-called money multiplier. Consider the case…
Unemployment and inflation: is there any relation?
A fall in the US unemployment rate to 4.6% in November from 4.9% in the month before and 5% in November last year has…
Does the Divisia monetary gauge help to define what money is?
Most economists hold that, since the early 1980s, correlations between various definitions of money and national income have broken down. The reason for this…
Why inflation is not about general increases in prices
There is almost complete unanimity among economists and various commentators that inflation is about general increases in the prices of goods and services….
There Are Two Types of Credit — One of Them Leads to Booms and Busts
In the slump of a cycle, businesses that were thriving begin to experience difficulties or go under. They do so not because of firm-specific entrepreneurial…
Trump’s economic plan runs the risk of severely derailing the US economy
Trump’s plan is what Keynes would have prescribed Most economic commentators such as a Nobel Laureate Paul Krugman should be delighted with the US…
Is the budget deficit an important problem?
According to some commentators the US federal budget deficit still remains a major economic problem notwithstanding that it draws less attention than in the…
Is the glut of saving behind downtrend in natural interest rate?
In his speech at the New York Federal Reserve of New York on October 5 2016 the Federal Reserve vice Chairman Stanley Fischer has…
Fed’s official expressed concern of a possible low natural rate
It is widely accepted that by means of suitable monetary policies the US central bank can navigate the economy towards a growth path of…
Could the elimination of cash prevent an economic crisis?
Given the still subdued economic growth many experts are of the view that the presence of cash has constrained central banks from setting negative…