Should central banks fight a decline in price inflation?
The yearly growth rate of the US consumer price index (CPI) fell to 0% in September from 0.2% in August and 1.7% in September…
The essence of interest rate determination
According to mainstream thinking the Central Bank is the key factor in determining interest rates. By setting short-term interest rates the Central Bank, it…
Real GDP and the strength of US economy
US real gross domestic product (GDP) grew faster than initially thought in Q2. GDP expanded at a 3.7% annual rate instead of the 2.3%…
Will China’s currency depreciation help the economy?
Last week the Chinese government decided to depreciate its currency on three consecutive occasions. On Thursday the price of the US$ was trading at…
Economic bust and stable price levels
The yearly rate of growth of the personal consumption expenditure (PCE) price index adjusted for food and energy stood at 1.3% in June –…
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…