Relation between minimum wage and unemployment
byOn January 21 2021, the US President Joe Biden, through an executive order announced an increase in workers minimum wage from $7.25 per hour…
Economics
Deflation: Friend or Foe?
byby Luis Pablo de la Horra Deflation is the most feared economic phenomenon of our time. The reason behind this a priori irrational fear (why should…
Low Rates and Limited Liability Mean Hot Markets
byWhat clear-eyed mortgage underwriter would sign on to a thirty-year loan at less than 3 percent? After all, in Las Vegas, for instance, the unemployment…
Why the idea of an optimum growth rate of money supply is questionable
byBy Dr Frank Shostak Most economists hold that a growing economy requires a growing money stock, on the grounds that growth gives rise to…
The Upside of Lockdowns: More Saving
bySomething good is coming out of the covid lockdowns. Economist David Rosenberg released a special report via the eponymous Rosenberg Research, concluding “the pre-COVID-19…
Time preference – and interest rate determination
byBy Dr Frank Shostak A common conception is that the central bank is a key factor in the determination of interest rates. On this…
Carl Menger and the Sesquicentennial Founding of the Austrian School
byThere are few works in the history of economics that may be truly considered “revolutionary” and “path-breaking,” in its starting premises, its logic, and…
Fiscal stimulus and economic growth
byFor most experts a key factor that policy makers should be watching is the ratio between actual real output and potential real output. The…
Why Mainstream Economic Forecasts Are So Often Wrong
byBy Daniel Lacalle Every end of the year, by the end of the year, we receive numerous estimates of global GDP growth and inflation…
The importance of assumptions in economics
byBy Dr Frank Shostak Various assumptions employed by economists in their models appear to be of an arbitrary nature. The assumptions seem to be…