The present monetary system the key cause for boom-bust cycles
Originally, paper money was not regarded as money but merely as a representation of gold. Various paper certificates represented claims on gold stored with…
Budget deficit and economic growth
Some economists such as Nobel Laureate Paul Krugman hold that during an economic slump it is the duty of the government to run large…
Are major economies suffering from the deficiency of demand?
In his article “The curse of weak global demand”, Financial Times November 18, 2014, the economics columnist Martin Wolf wrote that today’s most important…
Should economics emulate natural sciences?
Economists have always been envious of the practitioners of the natural and exact sciences. They have thought that introducing the methods of natural sciences…
Means-ends and consumer choices
A major problem with the mainstream framework of thinking is that people are presented as if a scale of preferences were hard-wired in their…
Macro economic data: an instrument for government intervention
It is generally held that for an economist to be able to assess the state of the economy he requires macro-economic indicators which will…
Should governments impose stricter regulations on large firms?
Frenchman Jean Tirole of the University of Toulouse won the 2014 Nobel Prize in Economic Sciences for devising methods to improve regulation of industries…
Fed introduces new economic indicator to better assess the labour market
Economists at the Federal Reserve have devised a new indicator, which they hold will enable US central bank policy makers to get better information…
Is an increase in capital goods orders always good for the economy?
Orders for US non-military capital goods excluding aircraft rose by 0.6% in August after a 0.2% decline in July to stand at $73.2 billion….
Does low US price inflation provide room for a more aggressive Fed?
The US Federal Reserve can keep stimulating the US economy because inflation is posing little threat, Federal Reserve Bank of Minneapolis President Kocherlakota said….