Personal finance in the Abbey

An old friend who is a nun keeps struggling with how little to consume of her retirement and investment income so as to give as much as possible away for charitable purposes. . . . → Read More: Personal finance in the Abbey

CPI & COLAs: Still costing us a bundle

In preparing a lecture on the Consumer Price Index (CPI), a popular measure of consumer price inflation, I was reminded of some of the measurement and policy issues involved. . . . → Read More: CPI & COLAs: Still costing us a bundle

The euro

We are faced with the prospect of a eurozone collapse. . . . → Read More: The euro

Famous formulas in economics (II): The equation of exchange

A simple formula with a foreboding name—the equation of exchange—illuminates the 2009 recession in the United States. . . . → Read More: Famous formulas in economics (II): The equation of exchange

Government Budget Deficits & Debt

To help readers better understand the turmoil on the European financial markets, The Economist, a respected weekly news magazine, recently published a brief on the elements that play into government budget deficits and accumulated debt. I thought it worthwhile to reexplain this more elaborately and also to provide a numerical, albeit hypothetical, example. . . . → Read More: Government Budget Deficits & Debt

Short-term versus Long-term Velocity

Why and how hoarding cash gums up the economic pipeline. . . . → Read More: Short-term versus Long-term Velocity

Economic Policy and the Equation of Exchange

J Brauer | © Stone Garden Economics

Introductory economics textbooks typically contain a couple of chapters on money and monetary policy, that is, on the Federal Reserve Bank’s power to influence the money supply in an economy and the consequences this may have on variables such as employment, inflation, and overall economic . . . → Read More: Economic Policy and the Equation of Exchange

Financial Storms

Everyone is chipping in their views on the financial crisis embroiling the United States. Here are my two cents’ worth. . . . → Read More: Financial Storms

Core Inflation?

For a long time now, policymakers have been trying to convince the public that “core inflation” is, somehow, a better measure of inflation than “inflation” itself. People aren’t buying the argument, and for good reason. . . . → Read More: Core Inflation?

Money Demand

When you go to your boss and ask for a raise, do you demand more money? Most people would say “Sure, asking for a raise is really like demanding more money for the work I do.” This is an example of a phrase, money demand, being used in different ways by people and economists. . . . → Read More: Money Demand

The Old Economy

Whew, am I glad that the stock market and the “new” economy are taking a beating! How mean of me to rejoice in your portfolio losses? Let me explain. . . . → Read More: The Old Economy

On Money and Rabbits in the Outback

Take out a dollar bill and hold it up. Examine it. Inspect it. Pick it over carefully. Surely, you say, this is money! An economist, however, would not entirely agree with you. . . . → Read More: On Money and Rabbits in the Outback