Frank Shostak

Articles

Does a Decline in “Aggregate Demand” Cause a Recession?

11/17/2025 Mises Wire Frank Shostak

Keynesian orthodoxy claims that the cause of recessions is a decline in so-called aggregate demand. Besides confusing cause-and-effect, Keynesians don't understand that downturns are the result of malinvestments made during the boom because of central bank interference in the economy.

Innovation Is Not the Key Driver of Economic Growth

11/10/2025 Mises Wire Frank Shostak

Contra the recent winners of the Nobel Memorial Prize in economics, free markets, private savings, and entrepreneurship not so-called innovation, is what drives a market economy.

Increases in the Money Supply, Not Corporate Profits, Drive Price Increases

11/03/2025 Mises Wire Frank Shostak

The “greedflation” commentators are at it again, claiming that corporate profits are driving inflation. That is a logical impossibility.

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Inflation and Economic Growth

10/03/2025 Frank Shostak

According to mainstream economists, inflation aids economic growth while deflation impairs growth. Austrian economists, however, point out that in much of US history, economic growth was accompanied by deflation.

Can Econometric Models Fulfill the Role of an Economic Laboratory?

08/11/2025 Frank Shostak

Mainstream economists claim that they can use econometric models to emulate human action and, thus, create an economic laboratory. These models, however, cannot tell us about cause-and-effect, which is vital to understanding praxeology and economic behavior.

How Does Money Acquire its Value?

08/04/2025 Frank Shostak

Thanks for modern Keynesian economics, most people believe money gains its value from the government that issues it. Money's value, however, is historically tied to the value of the commodity from which money was derived.

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