Do the Fed Chairman’s comments on the economy make any sense?
In his speech at the National Press Club, Washington, DC on February 3, 2011 the Federal Reserve Board Chairman Ben Bernanke repeated that the…
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Can expectations neutralise the side effects of loose monetary policy?
According to the Austrian Business Cycle Theory (ABCT), the artificial lowering of interest rates by the central bank leads to a misallocation of resources…
Read MoreIs Velocity Like Magic?
It is alleged that when the velocity of money rises, all other thing being equal, the buying power of money declines ie the prices…
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Has the US economy entered a self-sustaining growth path?
Recent strengthening in some key US economic data has prompted many economic commentators to suggest that the US economy may have entered upon a…
Read MoreCurrency devaluation and economic growth
According to popular thinking the key to economic growth is demand for goods and services. It is held that increases or decreases in demand…
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Inflationary expectations and economic growth
In its September 21 meeting Fed officials expressed concern that the US rate of inflation is far too low. Also, on Friday the Fed…
Read MoreWhy the policy of price stability leads to more instability
The whole idea of price stability originates from the view that volatile changes in the price level prevents individuals from clearly seeing market signals…
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Money supply and the US dollar
Money growth differential puts pressure on the US$ At the end of September the price of the Euro in US$ terms closed at 1.357…
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Is there a link between unemployment and economic growth?
Most commentators are of the view that the key for US economic recovery is drastically lowering the number of unemployed Americans. Once more people…
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Does the US economy need another stimulus package?
Despite the massive fiscal stimulus package of nearly $800 billion approved by the Congress early last year, and trillions of dollars pumped by the…
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