Why the dollar bill has value?
Why the dollar bill in our pocket has value? The value of money is established, according to some experts because the government in power…
Read MoreAustrian School
How Keynesian ideas continue to destroy the economy
As a result of the coronavirus pandemic most experts are of the view that it is the role of the government and central bank…
Read MoreCan an increase in the demand for money neutralize the effect of a corresponding increase in money supply?
According to popular thinking, not every increase in the supply of money will have an effect on the production of goods. For instance,…
Read MoreWhy the present monetary system is heading for a breakdown
Most economists hold that a growing economy requires a growing money stock, on grounds that growth gives rise to a greater demand for money,…
Read MoreSaturn Devours His Children
A recent Wall St Journal article gave vent to a scare-story full of Underconsumptionist claptrap, carried under the catchy headline: “The Coronavirus Savings Glut”….
Read More
The Chain Reaction Is Now In Process
Much has been written about the economic consequences of Covid-19, yet, just as in many of the analyses of the Great Depression and the…
Read MoreWhy the New Economics Just Boils Down to Printing More Money
[Editor’s Note: this article is adapted from a 2003 essay in the Quarterly Journal of Austrian Economics entitled “New Keynesian Monetary Views: A Comment.” As economists…
Read MoreSavings the heart of economic activity
It is held by most mainstream economists that spending is the heart of economic activity. Economic activity is depicted as a circular flow…
Read MoreImportance of a theory in economics
It is a common belief that sound economics must be based on facts and not on theoretical reasoning as such. Some commentators are…
Read MoreThe essence of inflation
The popular definition cannot explain why inflation is bad According to the popular way of thinking, inflation is defined as a general increase…
Read More