Frank Shostak
Frank Shostak is an adjunct scholar of the Mises Institute and a frequent contributor to Mises.org. His consulting firm, Applied Austrian School Economics, provides in-depth assessments and reports of financial markets and global economies.
Frank Shostak Articles
It is maintained by most experts that a general fall in prices, called deflation, is “bad news” for the economy because it postpones people’s buying of goods and services. This, in turn, allegedly undermines investment in plants and...
A commonly-held view is that money has value because the government in power says so. For other commentators, the value of money is established because money is accepted. But why is it accepted? Well, because it is accepted!
Projects that the government undertakes are likely to be of a questionable nature. The fact that the private sector did not undertake these projects indicates that these projects were not demanded or prioritized by consumers. For example,...
According to some economic commentators, the key for economic stability is that the central bank should state clearly the likely course of the monetary policy ahead. In this way of thinking, expected monetary policy is a factor of...
According to much popular thinking, “monopolies” are seen as undermining individuals’ economic well-being. For instance, monopolies are often blamed for increases in the prices of goods and services, often called inflation. Also,...
The yearly growth rate of the consumer price index (CPI) closed at 2.4 percent in February against a similar figure in January. In February 2025, the yearly growth rate stood at 2.8 percent. Note that, in June 2022, the yearly growth rate...
Some commentators are of the view that one cannot trust the market economy, which is seen as inherently unstable. If left free, the market economy could lead to self-destruction. Hence, there is the need for the government and the central...
According to much popular economics, the current monetary system amplifies the initial monetary injections of money. Thus, if the central bank injects $1 billion into the economy, and banks hold 10 percent in reserves against deposits,...
Most commentators are of the view that what prevents the attainment of price stability is the deviation of the policy interest rate, such as the federal funds rate, from the neutral interest rate, also known as the natural interest rate....
In the late 1960’s Edmund Phelps and Milton Friedman challenged the popular view that there can be a sustainable trade-off between inflation and unemployment. In fact, over time, according to Friedman, expansionary central bank policies...
