Entries by Frank Shostak

Interest Rate Tightening Will Cause Even More Economic Destruction

Estimated Reading Time: 4 minutes

Federal Reserve policies attempting to promote economic and price stability are a major cause for the recent acceleration in consumer prices. According to popular thinking, the central bank is supposed to promote both steady economic growth and price stability, the economy is perceived as a spaceship that occasionally slips from stability to instability. Supposedly, when […]

Monetary Pumping and Idle Resources

Estimated Reading Time: 5 minutes

As a result of the recent stimulus policies employed by the US government and the Fed, most commentators are of the view that the risk of a deepening slump in the US economy on account of the covid-19 pandemic has now receded. Some other commentators are not so certain that the risk has declined, arguing that […]

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