Frank Shostak
Mises Institute
Contact Frank
Discover and connect with journalists and influencers around the world, save time on email research, monitor the news, and more.
| Recent: |
|
| Past: |
|
Past articles by Frank:
The Present Fiat Monetary System Is Breaking Down
The heart of economic growth is an expanding subsistence fund, or the pool of real savings. This pool, which is composed of final consumer goods, sustains individuals in the various stages of the production process. → Read More
We Cannot Interpret Economic Data Unless We Know Economic Theory
Most economic commentators believe that historical data is the key in assessing the state of the economy. Thus, if a statistic such as real gross domestic product or industrial production displays a visible increase, then the economy is stronger. → Read More
Will the US Dollar Weaken against Other Currencies?
In the July 26 Financial Times article entitled “Is the Dollar about to Take a Turn?,” Barry Eichengreen writes that the US dollar has had a spectacular run, having risen more than 10 percent against other major currencies since the start of the year. → Read More
Are Technology Shocks Responsible for Business Cycles? In a Word, No.
In their writings, Finn Kydland and Edward C. Prescott (K-P), the 2004 Nobel laureates in economics, had hypothesized that a major cause behind boom-bust cycles is technology shocks. → Read More
Forget What the "Experts" Claim about Deflation: It Strengthens the Economy
For most experts, deflation is bad news since it generates expectations for a continued decline in prices, leading consumers to postpone the purchases of present goods, since they expect to purchase them at lower prices in the future. → Read More
Can Government Stimulus Bring Us Out of Recessions?
When signs of economic weakness emerge, most economics experts are quick to embrace the ideas of John Maynard Keynes. → Read More
Government Spending Doesn't Create Economic Growth
According to many commentators, outlays by government play an important role in the economic growth. In particular, when an economy falls into a slower economic growth phase the increase in government outlays could provide the necessary boost to revive the economy so it is held. → Read More
The Myth of the Neutral Interest Rate
In his speech to the Economic Club of New York on November 28 2018, the Federal Reserve Board Chairman Jerome Powell said that the US central bank’s policy interest rate is just below the neutral rate. → Read More
Statistical Analysis Isn't Enough to Understand Human Action
According to modern economics, various ideas that we have established about the world of economics emanates from historical data. By inspecting the data, an economist forms a view regarding its behavior. As long as the theory seems to explain the data, it continues to be regarded as valid. → Read More
The Phillips Curve Myth
It is a well-known belief that by means of monetary policy, the central bank can influence the rate of real economic expansion. It is also held that this influence however, carries a price, which manifests itself in terms of inflation. → Read More
Why Do People Assign Value to Paper Money?
Demand for a good arises because of its perceived benefit. For instance, people demand food because of the nourishment it offers them. This is however not so, with regard to the pieces of paper we call money — why do we accept them? → Read More
Myth: Gold Makes Boom-Bust Cycles Worse
According to some commentators on the gold standard, an increase in the supply of gold generates similar distortions as money out of “thin air” does. → Read More
Subjective Value Is not Arbitrary Value
In the Austrian view, every individual is seen as employing the resources or means at his disposal in order to secure various ends. The use of resources is not done haphazardly but in accordance with an individual's priorities. → Read More
Trump's Tariffs Are a Tax on Americans
On Thursday March 1, the Trump administration announced plans to impose 25% tariffs on imports of steel and 10% tariffs on imports of aluminum. → Read More
Is Money Creation Fueling the Stock Market Surge?
Is it true that changes in money supply are an important driving force behind changes in the stock price indexes?Intuitively it makes sense to argue that an increase in the growth rate of money supply should strengthen the growth rate in stock prices. → Read More
Mises Explains the Difference Between Circulation Credit and Commodity Credit
In the slump of a cycle, businesses that were thriving come to experience difficulties or go under. These errors aren't specific to any one firm. They occur in tandem with whole sectors of the economy. People who were wealthy yesterday have become poor today. → Read More
Is Inflation Driven more by "Expectations" than by the Money Supply?
For most economic commentators the underlying driving force of inflation is inflationary expectationsBen S. Bernanke “Inflation Expectations and Inflation Forecasting” July 10,2007, speech at the NBER.. → Read More
The Fed's Fantasy on Neutral Interest Rates
In her testimony to the Congressional Economic Committee on November 29, 2017, the Fed Chair Janet Yellen said that the neutral rate appears to be quite low by historical standards. From this, she concluded that the federal funds rate would not have to increase much to reach a neutral stance. → Read More
What Determines a Currency's Rate of Exchange?
Currency rates of exchange appear to be moving in response to so many factors that it makes it almost impossible to ascertain where the rate of exchange is likely to be headed. → Read More
The Fed Is Confused about What Drives Inflation
On October 4 2017, the former governor of the Federal Reserve Daniel Tarullo in a speech at the Brookings think-tank in Washington said Fed policy makers do not have a reliable theory of what drives inflation. → Read More