Should Greece loosen its fiscal and monetary stance?
The International Monetary Fund (IMF) confirmed that Greece had not made its scheduled 1.6 billion euro loan repayment to the fund. As a result…
The US natural unemployment rate and the Fed’s interest rate policy
In May the US unemployment rate stood at 5.5% against the rate of 5.3% for the natural unemployment also known as the Non-Accelerating Inflation…
Money supply and velocity
Mainstream view of what velocity is According to popular thinking the idea of velocity is straightforward. It is held that over any interval of…
New information technology and economic growth
In his article The Big Meh (The New York Times 28 of May 2015) the columnist Paul Krugman complains that despite all the information…
Is the Keynesian multiplier a real thing?
It is accepted by most economists that initial increases in consumer or other outlays tend to set in motion a reinforcing process which supposedly…
How liquidity drives the US stock market
In a market economy a major service that money provides is that of the medium of exchange. Producers exchange their goods for money and…
Understanding True Credit and False Credit
[Editor’s Note: This piece first appeared here http://mises.org/library/understanding-true-credit-and-false-credit] There are two kinds of credit: that which would be offered in a market economy with sound…
Does a fall in unemployment lead to stronger economic growth?
For the head of the Federal Reserve Board Janet Yellen and most economists the key to economic growth is a strengthening in the labor…
European Central Bank plan to unleash massive pumping is likely to further undermine the process of wealth generation
The European Central Bank (ECB) is planning to pump 1.1 trillion euro’s into the banking system to fend off price deflation and revive economic…
Swiss National Bank abandons franc’s cap against the euro
On January 15th 2015 the Swiss National Bank (SNB) has announced an end to its three year old cap of 1.20 franc per euro….