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….
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…