Can surveys tell us where the economy is heading?
To gain an insight into future economic conditions, many economists follow a variety of consumer and business surveys. The rationale for conducting surveys…
Does UK need looser fiscal stance to cushion Brexit?
“We are all Keynesians now, so let’s get fiscal” – this is one view according to Ambrose Evans-Pritchard[1] from The Telegraph who believes the…
Should we be concerned with the fall of money velocity?
A fall in the US velocity of money M2 to 1.44 in June from 1.51 in June last year and 2.2 in May 1997…
Is consumer psychology the driving force of economy?
Most experts regard consumer’s psychological disposition as the driving force of an economy. If consumers are optimistic and happy with the economy, no recession…
Why deflation is always good for the economy
For most experts, deflation, which they define as a general decline in prices of goods and services, is bad news since it generates expectations…
BREXIT and Economic Growth – is there any link?
On Thursday June 23 2016 the people of Britain voted in a referendum to leave the European Union (EU). Most commentators view Britain’s exit…
Why output gap is an empty abstraction
According to popular thinking the key cause behind either inflation or deflation is the difference, or the gap, between what an economy is producing…
Is deflation about decline in prices?
The majority of economists view deflation as a general decline in prices of goods and services. This is viewed as a major threat to…
Downtrend in the growth rate of money supply poses a threat to bubble activities
The yearly growth rate of real gross domestic product eased to 1.9% in Q4 from 2% in the previous quarter. Using our large scale…
European Central Bank poised to strengthen further monetary pumping
On January 21 2016 the European Central Bank (ECB) President Mario Draghi signaled that the governing council may provide more stimulus at its next…