Why interest rate management fails
byThis article explains why attempting to achieve economic outcomes by managing interest rates fails. The basis of monetary interventionist theories ignores the discoveries of…
Economics
Monetary savings versus real savings
byBy Dr Frank Shostak According to the National Income and Product Accounts (NIPA) the US personal savings rate stood at 13.6% in February against…
Carl Menger’s Theory of Institutions and Market Processes
byThis year marks the 150th anniversary of a radical change in the way economists came to understand the logic of human decision-making and the formation…
The global debt problem
byIt has been recently estimated that global debts stand at $284 trillion equivalent, representing 355% of global GDP. Estimates such as these must be…
Dangerous Monetary Manipulations and Fiscal Follies
byBack in the 1960s, Everett Dirksen (1896-1969) served as the Republican Party minority leader in the U.S. Senate. One of his famous lines about…
Biden’s economic stimulus plan an obstacle to US economic fundamentals
byBy Dr Frank Shostak On March 11, 2021, the US President Biden introduced his $1.9 trillion COVID-19 stimulus plan. The President also announced a…
Monetary policy transparency, the monetary bubble and the likely economic bust ahead
byBy Dr Frank Shostak In an interview with National Public Radio’s “Morning Edition” program on Thursday March 25 2021, Fed Chair Jerome Powell said…
Why loose monetary policies cannot set real economic growth?
byBy Dr Frank Shostak Between January 1970 and December 2020 on average changes in money supply preceded by 14 months changes in real economic…
Say’s law and the destruction of savings
byThis article explains the fundamental mistake behind Keynes’s General Theory, the vade mecum for all macro and mathematical economists today. It is no exaggeration…
To End Budget Deficits, Restrict Political Pickpockets
byGovernment spending is out of control. In March 2021, the Congressional Budget Office (CBO) projected that federal government spending in fiscal year 2021 (which began on…