Is the high level of debt a major economic risk factor?
By Dr Frank Shostak According to the British newspaper Daily Mail from February 8 2024 the US debt bomb is on the verge of…
Dr Frank Shostak
Dr Frank Shostak is a leading Austrian economist and director of Applied Austrian School Economics Ltd, which aims to assess the direction of various markets using the Austrian School methodology. AASE aims to make Austrian economics accessible to businessmen.
Can sophisticated technology prevent severe economic slump?
By Dr Frank Shostak According to the 2018 Nobel Prize winner in economics, Paul Romer, the technical knowledge that spills over into the creation…
Milton Friedman’s guitar string boom-bust model
By Dr Frank Shostak Some economists are of the view that it is possible to enhance our understanding of the facts of reality by…
Can gradual increase in the interest rate prevent an economic bust?
By Dr Frank Shostak Would it be possible to lower price inflation without large increases in the interest rates and large increases in unemployment?…
The trade account balance and the state of economy
By Dr Frank Shostak Some commentators consider the trade account balance as the single most important piece of information regarding the health of the…
Real savings the heart of credit
By Dr Frank Shostak By popular thinking banks are always ready to abide to increases in the demand for credit. Now, it is generally…
The Fed and the shape of the yield curve
By Dr Frank Shostak For many commentators, a change in the shape of the differential between the long-term interest rate and the short-term interest…
Time preference is the key driver of interest rates
By Dr Frank Shostak By popular thinking, whenever the central bank raises the growth rate of the money supply through the buying of financial…
Economic growth and savings
By Dr Frank Shostak The US consumer sentiment index as compiled by the University of Michigan fell to 69.5 in August from 71.6 in…
Why supply precedes demand?
In the market economy, wealth generators do not produce everything for their own consumption. Part of their production is used to exchange for…