“Mind-alteringly cheap”
by“The problem is not so much to see what nobody has yet seen, as to think what nobody has yet thought concerning that…
Economics
The illusion of the Keynesian multiplier
byFor most economists and financial commentators the heart of economic growth is the increase in the demand for goods and services. It is…
For those who don’t understand inflation
byThis article is a wake-up call for those who do not understand the true purpose of monetary inflation, and do not realise they are…
Interest Rates, Global Value Chains and Bank Reserve Requirements
byInterest Rates, Global Value Chains and Bank Reserve Requirements Global Value Chains have suffered since 2009 Despite low interest rates, financial costs remain…
Who determines interest rates?
byFor most experts the central bank determines short- term interest rates by setting the target to the benchmark policy rate such as the…
Debt, Deficits and the Cost of Free Lunches
byIt seems that every generation or two, fundamental economic ideas are questioned and challenged. The reasonable and important idea that governments should balance their…
Mises on 100-Percent Reserve Banking
byBy Edward W. Fuller Economists debate whether Ludwig von Mises advocated free banking or 100 percent reserve banking. This debate is significant. Mises states, “the…
Making sense of correlations in economics
byOften we observe that two pieces of data, which are not supposed to have any relationship, appear to have very high visual correlation….
Statistics and the facts of economic reality
byThe government’s releases of various economic indicators such as GDP, CPI and unemployment receive wide coverage in the media. In a measured and…
Forget velocity of money circulation
byIf there is one concept that illustrates the difference between a top-down macro-economic approach and the reality of everyday life it is the velocity…