Milton Friedman’s guitar string boom-bust model
By Dr Frank Shostak Some economists are of the view that it is possible to enhance our understanding of the facts of reality by…
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.
Can gradual increase in the interest rate prevent an economic bust?
By Dr Frank Shostak Would it be possible to lower price inflation without large increases in the interest rates and large increases in unemployment?…
The trade account balance and the state of economy
By Dr Frank Shostak Some commentators consider the trade account balance as the single most important piece of information regarding the health of the…
Real savings the heart of credit
By Dr Frank Shostak By popular thinking banks are always ready to abide to increases in the demand for credit. Now, it is generally…
The Fed and the shape of the yield curve
By Dr Frank Shostak For many commentators, a change in the shape of the differential between the long-term interest rate and the short-term interest…
Time preference is the key driver of interest rates
By Dr Frank Shostak By popular thinking, whenever the central bank raises the growth rate of the money supply through the buying of financial…
Economic growth and savings
By Dr Frank Shostak The US consumer sentiment index as compiled by the University of Michigan fell to 69.5 in August from 71.6 in…
Why supply precedes demand?
In the market economy, wealth generators do not produce everything for their own consumption. Part of their production is used to exchange for…
Do monopolies cause price inflation?
By Dr Frank Shostak The jump in the yearly growth rate of the consumer price index the CPI from 5.4% in June 2021 to…
Economic crisis and high level of debt
By Dr Frank Shostak Many economic commentators view debt as a major risk factor as far as economic health is concerned. This way of…