When does a recession become a depression?
byDefining a depression as opposed to a recession is open to wide interpretation Recessions are a natural part of the credit cycle Depressions…
Economics
Corona’s Surprising Productivity Surge
byBy Henrique Schneider Around the world, productivity growth has been slowing. In developed economies, productivity has risen by less than 1 percent annually for several…
Governments Have Crippled the World’s Economies. Revolution May Soon Follow.
byThe world seems to be on fire. A couple of months ago, the economic upswing was still firmly established, production expanded, and unemployment was…
Three little words
by“As I’ve written in past memos, I have an indelible recollection of the first book I read as a Wharton freshman in 1963. The…
There Will Be No Recovery Without Production
byThrough most of the coronavirus crisis, those who have made the case for stay-at-home, reduce or stop work, and narrow the range of retail…
Supply, demand and prices
byHere is a typical statement regarding supply and demand: “if the demand for any product increases, given the existing supply, the price of that product…
Statistical misdirection
byEconomists who understand credit cycles expect the current cycle to enter its crisis stage at any moment. Furthermore, it combines with increasing trade tariffs…
Targeting nGDP Targeting
byNot too long ago, we wrote about the so called Modern Monetary so called Theory (MMT). It is not modern, and it is not…
FinTech Companies; little innovation and no reform of banking
byNew entrants into every aspect of banking were encouraged by two recent regulatory developments: the Open Banking initiative and the ‘sandboxing’ exemptions from regulations….
Inflationary financing and GDP
byThis article demonstrates that only government borrowing in the US and UK drives GDP growth. This surprising conclusion is confirmed by long-run statistics. GDP…