Can expectations undo the validity of the Mises’s business cycle theory?
According to Ludwig von Mises’s Austrian Business Cycle Theory (ABCT), the artificial lowering of interest rates by the central bank leads to a…
Read MoreEconomics
Low yield, no yield, negative yield – Buy now but don’t forget to sell
The amount of negative yielding fixed securities has hit a new record The Federal Reserve and the ECB are expected to resume easing…
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“Mind-alteringly cheap”
“The problem is not so much to see what nobody has yet seen, as to think what nobody has yet thought concerning that…
Read MoreThe illusion of the Keynesian multiplier
For most economists and financial commentators the heart of economic growth is the increase in the demand for goods and services. It is…
Read MoreFor those who don’t understand inflation
This article is a wake-up call for those who do not understand the true purpose of monetary inflation, and do not realise they are…
Read MoreInterest Rates, Global Value Chains and Bank Reserve Requirements
Interest Rates, Global Value Chains and Bank Reserve Requirements Global Value Chains have suffered since 2009 Despite low interest rates, financial costs remain…
Read MoreWho determines interest rates?
For most experts the central bank determines short- term interest rates by setting the target to the benchmark policy rate such as the…
Read MoreDebt, Deficits and the Cost of Free Lunches
It seems that every generation or two, fundamental economic ideas are questioned and challenged. The reasonable and important idea that governments should balance their…
Read MoreMises on 100-Percent Reserve Banking
By Edward W. Fuller Economists debate whether Ludwig von Mises advocated free banking or 100 percent reserve banking. This debate is significant. Mises states, “the…
Read MoreMaking sense of correlations in economics
Often we observe that two pieces of data, which are not supposed to have any relationship, appear to have very high visual correlation….
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