Money Printing Can’t Replace Saving & Production As The Real Engine Of Economic Growth
Bubbles, booms, and eventual crashes result…
Continue readingFrank Shostak
The Fed Chairman And The Phillips Curve
The Fed is trying to justify the lowering of the interest rate target thus setting in motion a further misallocation of scarce real wealth.
Continue readingWhen Will The Stock Market Respond To 2016’s Liquidity Collapse?
The increase in the US stock market this year appears to defy the visible softening in the momentum of various economic data…
Continue readingLow Price Inflation Means the Fed Will Retreat to Low Rates and Easy Money
2% inflation allows the Fed to reach a real interest rate of minus 2% while maintaining nominal rates at 0%, which clearly could stimulate economic growth…
Continue readingLow Inflation Is No Threat to the Economy
For instance, when the inflation rate is minus 1% and the nominal interest rate is 0% then the…
Continue readingCan Central Banks Avoid Booms And Busts With The ‘Right’ Amount Of Money Creation?
Within the framework of a free market, there cannot be such thing as “too little” or “too much” money, as long as…
Continue readingThe Neutral Interest Rate: The Fed’s Impossible Goal
The whole idea of the neutral interest rate is unrealistic. What the Fed is trying to establish is a level of interest rate that corresponds to…
Continue readingWhy The Boom Bust Cycle Keeps Repeating
The boom-bust cycle is somehow linked to the modern world. But what is the link? The source of the recurring boom-bust cycles turns out to be the…
Continue readingWhy We Need Savings To Produce What We Need
“Any so-called economic growth…can only be on account of the private sector that manages to grow the pool of real savings…”
Continue readingBoom-Bust Cycles, Easy Money, And The Gold Standard
Would the gold standard contribute to boom-bust cycles like the ones we see today as the result of printing money out of thin air? Here’s some insight…
Continue readingGDP Growth Is Not The Same Thing As Real Economic Growth
Movements in GDP cannot tell us what is going on in the real economy. If anything, GDP can actually provide us with a false impression. Here’s why…
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