Why in a pure free market dollar cannot be an independent entity?
Prior to 1933, the name “dollar” was used to refer to a unit of gold that had a weight of 23.22 grains. Since…
Can economic data by itself provide early warning regarding boom-bust cycles?
Most economists are of the view that by means of economic indicators it is possible to identify early warning signs regarding an upcoming recession…
The relevancy of probability in economics
Modern economics in addition to sophisticated mathematics also employs probability distributions. What is probability? The probability of an event is the proportion of times…
Can we ascertain the facts of reality in economics by means of mathematics?
It is generally held that by means of statistical and mathematical methods one can organize historical data into a useful body of information, which…
Why perfect competition is not so perfect
According to the popular view, a proper competitive environment must emulate the perfect competition model. In the world of perfect competition, a market is…
Money and the stock market: is there any relation?
Is it true that changes in money supply are an important driving force behind changes in the stock price indexes? Intuitively it makes sense…
Is the fall in prices bad news?
Contrary to the popular way of thinking, we suggest that there is nothing wrong with declining prices. What signifies industrial market economy under a…
Are inflationary expectations the heart of inflation?
For most economic commentators the underlying driving force of inflation is inflationary expectations[1]. For instance, if there is a sharp increase in the price…
The fallacy of insufficient demand
Following the ideas of Keynes and Friedman, most mainstream economists associate economic growth with increases in the demand for goods and services. Both Keynes…
The essence of profit
In most cultures, profit is seen as the outcome of exploitation of some individuals by some other individuals. Hence, anyone who is seen as…