Sunday, February 19, 2017

Say's Law: The Antidote to Countless Economic Fallacies

Say's Law: The Antidote to Countless Economic Fallacies: To understand the principle that has been called Say’s Law, it is useful to start by thinking about what unhampered exchange is: the mutual offering of goods and services between people.

Friday, February 10, 2017

Price Controls and Propaganda

Price Controls and Propaganda: Most economists agree on one thing; price controls do not work. Many go on to say they create shortages of goods, which inevitably drives black market prices even higher than they would otherwise be. Price controls were last tried in the 1970s, and everyone swore, never again.

Friday, February 3, 2017

Tightening the Money Supply will Inevitably Lead to a Bust

Tightening the Money Supply will Inevitably Lead to a Bust: Fed policymakers are of the view that the correct interest rate policy could bring the economy onto a path of economic stability and low price inflation. The idea is to guide interest rates toward what is called the “natural” interest rate.