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 generally held that bank credit is a major driver of economic growth. Hence, it would appear that, through an increase in the supply of credit, banks could strengthen the process of wealth generation. Without previous private savings...
Through the ongoing process of exchange, people eventually settled on gold as their preferred medium of exchange. Some commentators cast doubt that gold could fulfill the role of money in the modern world. It is held that, relative to the...
According to many, the key cause of a general increase in prices is inflationary expectations. For instance, if there is a large increase in the prices of oil, individuals, it is held, will start forming expectations for higher inflation...
For most economists, the key to healthy economic fundamentals is price stability. Price stability is an economic condition where the general price level of goods remains relatively constant over time. It is held that a stable price level...
The view that an increase in the money supply could revive an economy is based on the idea that money transmits its effect through the aggregate expenditure. With more money in their pockets, people will be able to spend more, and the rest...
Financial markets involve various individuals engaged in the buying and selling of financial assets. Most of the time, the actions of the market participants are driven by popular ideas. If the market participants were to follow a theory...
According to minutes from the US Federal Reserve’s April meeting, a majority of officials thought that higher interest rates may become necessary to combat a resurgent inflation. According to the minutes, a majority of the participants...
There is a high likelihood that, due to the past large decline in the yearly growth rate of the money supply, the US economy is heading towards an economic bust. Note that the yearly growth rate of money supply fell from 79 percent in...
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!
