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…
Are governments’ efforts to reduce unemployment a cost-free solution?
Once an economy falls into an economic slump and the level of unemployment begins to rise most commentators are of the view that it…
The IMF chief economist sees a threat to world economies from a liquidity trap
In the Financial Times from November 2 2020, the IMF chief economist Gita Gopinath suggested that world economies at present are likely to be…
Can economic data help to clarify the state of the business cycle?
According to the popular way of thinking, various economic data can provide an analyst with the necessary information regarding the state of the economy….
The Fed and asset bubbles
According to the Financial Times from October 18th 2020, senior Federal Reserve officials are calling for tougher financial regulation to prevent the US central…
Can constant money growth rule prevent boom-bust cycles?
According to the Nobel Laureate in Economics, Milton Friedman, the key cause of the business cycles is the fluctuations in the growth rate of…
Why inflation is not about general increases in prices
For most commentators, inflation is about general increases in the prices of goods and services. From this, it is established that anything that contributes…
Is demand independent of production?
Following the ideas of John Maynard Keynes and Milton Friedman, many commentators associate economic growth with increases in the demand for goods and services….