Changes in government deposits and money supply
The US debt ceiling suspension, signed in February 2018, expires at the beginning of March this year. Some commentators are of the view…
Read MoreAustrian School
Don’t be so negative
“FED’S WILLIAMS SAYS IN A DOWNTURN WE COULD CONSIDER QUANTITATIVE EASING, NEGATIVE RATES.” Tweet by Reuters’ Jennifer Ablan, reporting on a speech by…
Read MoreImportance of model building in economics
In the natural sciences, a laboratory experiment can isolate various elements and their movements. There is no equivalent in the discipline of economics….
Read MoreTax cuts without reducing government outlays is not possible
According to many economic experts and commentators, an effective way to generate economic growth is through the lowering of taxes. The lowering of…
Read MoreFlying Pigs
Does transparent monetary policy lead to economic stability?
In his various writings, the champion of the monetarist school, Milton Friedman, argued that there is a variable time lag between changes in money…
Read MoreWhat They Don’t Want You to Know about Prices
ast week, in part I of this essay, we discussed why a central planner cannot know the right interest rate. Central planner’s macroeconomic aggregate measures like…
Read More
The Difference between Money Supply & Liquidity
The US debt ceiling suspension, signed on February 2018, expires in March this year. According to some experts, the US Treasury will have to…
Read MoreWhy is savings not about money?
Conventional wisdom says that savings is the amount of money left after monetary income was used for consumer outlays, implying that saving is…
Read MoreThe Dangers of Negative Interest Rates and a Cashless Economy
The recent gyrations in the stock market and the uncertainties surrounding American trade policies with China and other parts of the world have raised…
Read More