Why perfect competition is not so perfect
byAccording to the popular view, a proper competitive environment must emulate the perfect competition model. In the world of perfect competition, a market is…
January, 2018
Central Banks Put a Safety Net Under Financial Markets
byMost early business cycle indicators suggest that the global economy is pretty much roaring ahead. Production and employment are rising. Firms keep investing and…
Artificial intelligence
by“Sir, I think that I have at long last identified why the National Health Service is experiencing high levels of patient pressure, especially…
Money and the stock market: is there any relation?
byIs it true that changes in money supply are an important driving force behind changes in the stock price indexes? Intuitively it makes sense…
The risk of a correction in the equity bull market
byRising commodity prices, including oil, are feeding through to PPI Unemployment data suggests wages may begin to rise faster Federal Reserve tightening will continue,…
The truth about trade
byThe one subject, which became a headline issue last year, and even divides experts is trade. It will become increasingly important in 2018 as…
Is the fall in prices bad news?
byContrary to the popular way of thinking, we suggest that there is nothing wrong with declining prices. What signifies industrial market economy under a…
Capitalism and How Expectations Coordinate Markets
byOpen, competitive markets have a resilient capacity to successfully coordinate the actions of, now, billions of people around the world. With an amazing adaptability…
Jeffrey P. Snider: Good or Bad, But Surely Not Transitory
byby Jeffrey P. Snider When Federal Reserve officials first started last year to mention wireless network data plans as a possible explanation for a…
Are inflationary expectations the heart of inflation?
byFor most economic commentators the underlying driving force of inflation is inflationary expectations[1]. For instance, if there is a sharp increase in the price…