Why 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…
Is an increase in demand key for economic growth?
Whenever the so-called economy shows signs of weakness most experts are of the view that what is required to prevent the economy sliding into…
Liquidity and the stock market
In a market economy, a major service that money provides is that of the medium of exchange. Producers exchange their goods for money…
The neutral interest rate myth
In his speech to the Economic Club of New York on November 28 2018, the Federal Reserve Board Chairman Jerome Powell said that…
Why velocity of money and the purchasing power of money are not related?
Some commentators are of the view that when the velocity of money rises, all other thing being equal, the buying power of money…
Money growth and inflation – is there a connection?
According to many mainstream economists, a lack of good correlation between the monetary growth and the growth rate of various price indexes casts doubt…
Easy monetary policy and the pattern of consumption
With meagre resources at his disposal, an individual is likely to allocate these resources i.e. his wealth towards essentials such as food, clothing…
What is the relation between supply and demand for money?
For most economists there is the need to keep the so-called economy along the path of a stable economic growth and a stable…
Why an increase in capital goods may not always be good for economic prosperity
The annual rate for US non-military capital goods orders excluding aircraft fell to 1.9% in September from 7.8% in August to stand at $69.6 billion. Observe that…
Statistical analyses and facts of reality
According to modern economics, various ideas that we have established about the world of economics emanates from historical data. By inspecting the data, an…