What should be the correct money supply growth rate?
Most economists believe that a growing economy requires a growing money stock, on grounds that growth gives rise to a greater demand for money,…
Should diversification be primary consideration in asset allocations?
Recently one of the most successful Wall Street investors Warren Buffet urged investors to forget about active investment and simply put their money into…
How macro-economic data helps Government and Central Bank weaken wealth formation
It is common for commentators and economists in their discussions to continuously refer to something called the “economy” – which sometimes performs well and…
Balance of payments and the exchange rate: is there a connection?
According to conventional analysis, a key factor in exchange rate determination is the state of the balance of payments. It is held that as…
How the Fed operates
We are often asked about the mechanisms by which the US Federal Reserve Board (the Fed) influences the level of US interest rates and…
Central banks and money creation is there any connection?
According to traditional economics textbooks, the current monetary system amplifies the initial monetary injections of money. The popular story goes as follows: if the…
Pool of wealth and economic bust
It has now become settled wisdom that the massive monetary pumping by the US central bank during and after the 2008 financial crisis saved…
Should cash be eliminated?
At the World Economic Forum in Davos Switzerland, Joseph Stiglitz the Nobel Prize-winning economist argued in favor of phasing out currency and moving towards…
Can the Fed tighten without rocking the economy?
Fed policy makers are of the view that the correct interest rate policy could bring the economy onto a path of economic stability and…
Can sophisticated technology prevent a recession?
The world has come a long way since the heady days before the Great Depression of the 1930s. Technology, for one thing, has meant…