Speculative Financial Attacks

reprinted from Express Tribune, 8th June 2015 {bit.ly/AZHunt} We live in a world awash with money. Not only can the banks create 20 times more money than the amount they receive as deposits, but an enormous shadow banking system has come into existence which creates massive amounts of credit without any regulatory restrictions. At a… Read More Speculative Financial Attacks

Why does Aggregate Demand Collapse?

The Great Depression of 1929, and now the Great Recession following the Global Financial Crisis, poses several puzzles for economists. One is them is the sudden and severe drop in aggregate demand. This leads firms to curtail production, and therefore reduces demand for factors of production, most importantly labor. Why does aggregate demand fall, and… Read More Why does Aggregate Demand Collapse?

Economics Education. What is finance about ?

Finance is not just related to management techniques, procedures or product phenomena but involve institutions, behaviours and policies. In a monetary economy, accordingly John Maynard Keynes, money, as the institution that founds the exchange system, is a link between the present and the future. Finance fosters the capital accumulation process that develops through time and… Read More Economics Education. What is finance about ?