Is the high level of debt a major economic risk factor?
Many economic commentators regard high level of debt relative to GDP as a major risk factor as far as economic health is concerned. This…
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.
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…
Pool of funding the heart of economic growth
Most experts are of the view that massive monetary pumping by the US central bank, the Fed, during the 2008 financial crisis saved the…
Why the positive time preference theory valid despite data contradiction?
In the Mises Institute daily articles column the Wire on November 21 2017 Doug French raised very important issue of negative interest rates. He…
Can Fed policy makers know the level of the neutral rate?
In her testimony to the Congress Economic Committee on November 29, 2017, the Fed Chair Janet Yellen said that the neutral rate appears to…
Is there a place for behavioural economics in the field of economics?
Recently, a relatively new economics called Behavioural Economics (BE) has started to gain popularity. Its practitioners such as Daniel Kahneman, Vernon Smith and Richard…
Is funding about money?
A key factor that constrains people’s ability to generate goods and services is the scarcity of funding. Contrary to popular thinking, funding is not…
Can gradual interest rate tightening prevent shocks?
Fed policy makers are of the view that if there is the need to tighten the interest rate stance the tightening should be gradual…
What should be the criteria for model selection?
In order to make the data “talk,” economists utilize a range of statistical methods that vary from highly complex models to a simple display…
Fed confused about what drives inflation
On October 4 2017, the former governor of the Federal Reserve Daniel Tarullo in a speech at the Brookings think-tank in Washington said Fed…