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…
Austrian School
The importance of assumptions in economics
by Dr Frank ShostakBy Dr Frank Shostak Various assumptions employed by economists in their models appear to be of an arbitrary nature. The assumptions seem to be…
Does cost cutting undermine economic growth?
by Dr Frank ShostakBy Dr Frank Shostak By some commentators, cost cutting by companies in order to protect profits can in fact set in motion an economic…
Quantitative methods in economics describe but do not explain
by Dr Frank ShostakBy Dr Frank Shostak Most economists regard the use of mathematical and statistical methods as the key towards understanding the complexities of economics. They…
The supply – demand curves framework and the real world
by Dr Frank ShostakBy Dr Frank Shostak By the popular way of thinking, the determination of the prices of goods is summarized by means of supply and…
Can economic data help to clarify the state of the business cycle?
by Dr Frank ShostakAccording to the popular way of thinking, various economic data can provide an analyst with the necessary information regarding the state of the economy….
The Fed and asset bubbles
by Dr Frank ShostakAccording to the Financial Times from October 18th 2020, senior Federal Reserve officials are calling for tougher financial regulation to prevent the US central…
Can constant money growth rule prevent boom-bust cycles?
by Dr Frank ShostakAccording to the Nobel Laureate in Economics, Milton Friedman, the key cause of the business cycles is the fluctuations in the growth rate of…
Is diversification the heart of investment?
by Dr Frank ShostakAccording to the Modern Portfolio Theory (MPT), financial asset prices always fully reflect all available and relevant information, and that any adjustment to…
Keynesian ideas can only make things worse
by Dr Frank ShostakIn the New York Times on September 8, 2020, Paul Krugman suggested that “The CARES Act, enacted in March, gave the unemployed an extra…