Why profitability and not risk should be primary consideration in asset allocation
It is widely held that financial asset markets always fully reflect all available and relevant information, and that adjustment to new information is virtually…
Is the criteria for the model selection its predictive power?
In order to make the data “talk,” economists utilize a range of statistical methods that vary from highly complex models to a simple display…
The velocity of money myth
Effect of changes in money supply on economic activity and prices is a velocity of money. It is alleged that when the velocity…
ECOFLASH: Economy may force the Fed to reverse its interest rate stance
The Fed hiked interest rates for the second time this year, in a widely expected move on Wednesday June 14. The Federal Reserve’s Open Market…
Money out of “thin air” and economic cycles
According to the Nobel Laureate in Economics, Milton Friedman, the root of the business cycle is the fluctuations in the growth rate of money…
Does the existence of unemployed resources justify easy money?
Once an economy falls into recession many commentators tend to express concern that as a result of the economic slump there are now…
How magical is the Keynesian multiplier?
For most economists and financial commentators the heart of economic growth is the increase in the demand for goods and services. The view is…
Does the price of oil determine general increases in the prices of goods and services?
A very good visual correlation between the yearly percentage change in the consumer price index (CPI) and the yearly percentage change in the price…
Rapid money growth and inflation – is there a connection?
In the article “Rapid money supply growth does not cause inflation” written by Richard Vague at the Institute for New Economic Thinking, December 2,2016…
Fed’s policy of price stability results in more instability
For most economists the key factor that sets the foundation for healthy economic fundamentals is a stable price level as depicted by the consumer…