Fed chairman and the Phillips curve
byOn July 11, 2019 before the Senate Banking Committee, the Federal Reserve Board Chairman Jerome Powell said that the relationship between unemployment and…
Economics
Is low inflation a threat to the US economy?
by“When interest rates are low central banks don’t have much room to maneuver to deal with a crisis”, The New York Fed President…
4 Ways Employers Respond to Minimum Wage Laws (Besides Laying Off Workers)
byMost of you will be familiar with a supply and demand graph. This shows a demand curve, which graphs the relationship between the price…
Can expectations undo the validity of the Mises’s business cycle theory?
byAccording to Ludwig von Mises’s Austrian Business Cycle Theory (ABCT), the artificial lowering of interest rates by the central bank leads to a…
Low yield, no yield, negative yield – Buy now but don’t forget to sell
byThe amount of negative yielding fixed securities has hit a new record The Federal Reserve and the ECB are expected to resume easing…
“Mind-alteringly cheap”
by“The problem is not so much to see what nobody has yet seen, as to think what nobody has yet thought concerning that…
The illusion of the Keynesian multiplier
byFor most economists and financial commentators the heart of economic growth is the increase in the demand for goods and services. It is…
For those who don’t understand inflation
byThis article is a wake-up call for those who do not understand the true purpose of monetary inflation, and do not realise they are…
Interest Rates, Global Value Chains and Bank Reserve Requirements
byInterest Rates, Global Value Chains and Bank Reserve Requirements Global Value Chains have suffered since 2009 Despite low interest rates, financial costs remain…
Who determines interest rates?
byFor most experts the central bank determines short- term interest rates by setting the target to the benchmark policy rate such as the…