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…
Austrian School
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…
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…
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…
Mises on 100-Percent Reserve Banking
byBy Edward W. Fuller Economists debate whether Ludwig von Mises advocated free banking or 100 percent reserve banking. This debate is significant. Mises states, “the…
Making sense of correlations in economics
byOften we observe that two pieces of data, which are not supposed to have any relationship, appear to have very high visual correlation….
Statistics and the facts of economic reality
byThe government’s releases of various economic indicators such as GDP, CPI and unemployment receive wide coverage in the media. In a measured and…
Is deflation about general decline in prices?
byFor most experts deflation is bad news since it generates expectations for a decline in prices. Because of this it is held, consumers…
The balance of payments myth
byIn March, the US trade account balance stood at a deficit of $50 billion against a deficit of $49.28 billion in February and a…