Global Economy

As with everything else in life, competition among conceptual frameworks is very healthy, since it can quickly highlight when an economist is likely abusing his favorite technique.

Taking into account not just rapid domestic expansion, but also the sharp fall in the greenback, broad, dollar-denominated money supply went up on

The falling US dollar eats away at foreign workers' savings as the money is converted to their national currencies, but, more important, it discourages people leaning towards employment in the outsourced sector.

OFCOM, by forcing the functional separation of BT and the creation of BT Openreach, altered the structure of production that the market had set up in answer to customer preferences.

Let us say that the present aggressive interest rate stance by the Fed fails to prevent the economy from falling into a recession; what kind of action is Bernanke then going to undertake? In some of his writings, he has suggested that, under such circumstances, the Fed should adopt a very aggressive stance and start pushing money on a massive scale, i.e., helicopter money. Needless to say that if this were to happen, Bernanke would run the risk of badly damaging the foundations of the real economy.

The crucial point to remember is that there is nothing magical about government officials.

The twenty-first century belongs to China.

 The advantages of the corporate form — limited liability and raising capital — have been known for as long as mankind has had the technology to produce useful things whose production is too expensive for a single investor to handle.

The Fed's likely continuation of its inflation in an attempt to solve the problems created by its previous inflation and the consequence that this will drive down the value of the dollar on foreign exchange markets will provide momentum for the commodity-price boom for some time.

If we can avoid the protectionist trap and reconcile the budget, the falling value of the dollar will eventually attract investors and stimulate exports.