Can expansionary fiscal and monetary policies counter recessions?
byWhen signs of economic weakness emerge, most economics experts are quick to embrace the ideas of John Maynard Keynes. For most economists…
Austrian School
What the shape of the yield spread implies?
byA fall in the difference between the yield on the 10-year US T-Bond and the US 3-month Treasury bill into negative territory has…
Being and Time (and central banks)
byPeople value present goods more highly than future goods. For instance, an apple available today is considered more valuable than the same apple available…
Changes in government deposits and money supply
byThe US debt ceiling suspension, signed in February 2018, expires at the beginning of March this year. Some commentators are of the view…
Don’t be so negative
by“FED’S WILLIAMS SAYS IN A DOWNTURN WE COULD CONSIDER QUANTITATIVE EASING, NEGATIVE RATES.” Tweet by Reuters’ Jennifer Ablan, reporting on a speech by…
Importance of model building in economics
byIn the natural sciences, a laboratory experiment can isolate various elements and their movements. There is no equivalent in the discipline of economics….
Tax cuts without reducing government outlays is not possible
byAccording to many economic experts and commentators, an effective way to generate economic growth is through the lowering of taxes. The lowering of…
Flying Pigs
byDoes transparent monetary policy lead to economic stability?
byIn his various writings, the champion of the monetarist school, Milton Friedman, argued that there is a variable time lag between changes in money…
What They Don’t Want You to Know about Prices
byast week, in part I of this essay, we discussed why a central planner cannot know the right interest rate. Central planner’s macroeconomic aggregate measures like…