Is technical knowledge the key driver of economic growth?
According to some commentators such as Nobel Laureate in Economics Paul Romer, technical knowledge is key to economic growth. We hold that if this…
Relation between minimum wage and unemployment
On January 21 2021, the US President Joe Biden, through an executive order announced an increase in workers minimum wage from $7.25 per hour…
Why the idea of an optimum growth rate of money supply is questionable
By Dr Frank Shostak Most economists hold that a growing economy requires a growing money stock, on the grounds that growth gives rise to…
Time preference – and interest rate determination
By Dr Frank Shostak A common conception is that the central bank is a key factor in the determination of interest rates. On this…
Fiscal stimulus and economic growth
For most experts a key factor that policy makers should be watching is the ratio between actual real output and potential real output. The…
The importance of assumptions in economics
By Dr Frank Shostak Various assumptions employed by economists in their models appear to be of an arbitrary nature. The assumptions seem to be…
Does cost cutting undermine economic growth?
By Dr Frank Shostak By some commentators, cost cutting by companies in order to protect profits can in fact set in motion an economic…
Quantitative methods in economics describe but do not explain
By Dr Frank Shostak Most economists regard the use of mathematical and statistical methods as the key towards understanding the complexities of economics. They…
The supply – demand curves framework and the real world
By Dr Frank Shostak By the popular way of thinking, the determination of the prices of goods is summarized by means of supply and…
Could a tighter monetary stance undo the effects from an easy monetary stance?
By Dr Frank Shostak By a popular way of thinking, it is the role of the central bank to make sure that economy follows…