We are faced with the prospect of a eurozone collapse. . . . → Read More: The euro
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
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
Why and how hoarding cash gums up the economic pipeline. . . . → Read More: Short-term versus Long-term Velocity
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
Everyone is chipping in their views on the financial crisis embroiling the United States. Here are my two cents’ worth. . . . → Read More: Financial Storms
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?
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
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
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
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
Now that the hoopla about the Federal Reserve Bank’s cutting interest rates has died down a bit, it’s time to correct some misconceptions. Foremost among those is the notion that the Fed actually cuts or raises interest rates. Nonsense. The Fed does no such thing. . . . → Read More: Does the Fed Set Interest Rates? No.