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…
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The 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 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 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….
Read MoreStatistics and the facts of economic reality
The government’s releases of various economic indicators such as GDP, CPI and unemployment receive wide coverage in the media. In a measured and…
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Is deflation about general decline in prices?
For most experts deflation is bad news since it generates expectations for a decline in prices. Because of this it is held, consumers…
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The balance of payments myth
In March, the US trade account balance stood at a deficit of $50 billion against a deficit of $49.28 billion in February and a…
Read MoreShould the Fed tamper with the quantity of money?
Most economists are of the view that a growing economy requires a growing money stock, because economic growth gives rise to a greater…
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