Stone Garden Economics

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

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

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

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?

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

The world financial markets are in turmoil once again. This time the malaise concerns Argentina, Turkey, and South Africa whose currencies are rapidly declining in value. What is the economics behind declining currency values? This column describes the underlying logic. . . . → Read More: Currency Speculation