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…
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.
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…
Is deflation bad for the economy?
By Dr Frank Shostak For most experts, deflation is bad news since it generates expectations for a continued decline in prices. Because of this,…
Expectations and the Austrian Business Cycle Theory
According to the Austrian Business Cycle Theory (ABCT), the artificial lowering of interest rates by the central bank leads to a misallocation of resources…
The essence of price determination
By Dr Frank Shostak Why do individuals pay much higher prices for some goods versus other goods? The common reply to this is the…
Why more money can’t generate economic growth?
By Dr Frank Shostak The view that more money can revive an economy is based on the belief that money transmits its stimulatory effect…
Is the US banking crisis over?
By Dr Frank Shostak According to some commentators, the US banking crises is over. In addition, the Fed Chairman has vouched for the health…
Assumptions in economics and the real world
By Dr Frank Shostak In order to explain the economic crisis in Japan, the famous mainstream economist Paul Krugman employed a model that assumes…
Savings and economic growth
By Dr Frank Shostak By popular thinking, an increase in the consumption of goods and services is regarded as a major driver of the…