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On Thursday March 1, the Trump administration announced plans to impose 25% tariffs on imports of steel and 10% tariffs on imports of aluminum. The US President is of the view that without the required protection, the US steel and aluminium industries are likely to follow the deteriorating path and this in turn will undermine the US labor market.

According to the popular view, a proper competitive environment must emulate the perfect competition model. In the world of perfect competition, a market is characterized by the following features: There are many buyers and sellers on the market Homogeneous products are traded Buyers and sellers are perfectly informed There are no obstacles or

It is generally held that by means of statistical and mathematical methods one can organize historical data into a useful body of information, which in turn can serve as the basis for the assessments of the state of the economy. It is also held that the knowledge secured from the assessment of the data is likely to be of a tentative nature since

Is it true that changes in money supply are an important driving force behind changes in the stock price indexes? Intuitively it makes sense to argue that an increase in the growth rate of money supply should strengthen the growth rate in stock prices. Conversely, a fall in the growth rate of money supply should slow down the growth momentum of

Most economists are of the view that by means of economic indicators it is possible to identify early warning signs regarding an upcoming recession or prosperity. What is the rationale behind this approach? The National Bureau of Economic Research introduced the economic indicators approach in the 1930’s. A research team led by W.C. Mitchell and

Recently, a relatively new economics called Behavioral Economics (BE) has started to gain popularity. Its practitioners such as Daniel Kahneman, Vernon Smith, and Richard Thaler were awarded Nobel prizes for their contribution in the field of BE. The BE framework emerged on account of dissatisfaction with the neo-classical theory regarding

Currency rates of exchange appear to be moving in response to so many factors that it makes it almost impossible to ascertain where the rate of exchange is likely to be headed. But rather than paying attention to the multitude of variables, it is more sensible to focus on the essential variable. As far as the currency rate of exchange

Prior to 1933, the name “dollar” was used to refer to a unit of gold that had a weight of 23.22 grains. Since there are 480 grains in one ounce, this means that the name dollar also stood for 0.048 ounce of gold. This in turn, means that one ounce of gold referred to $20.67. Observe that $20.67 is not the price of one ounce of gold in terms of

According to Ludwig von Mises, Inflation, as this term was always used everywhere and especially in this country, means increasing the quantity of money and bank notes in circulation and the quantity of bank deposits subject to check. But people today use the term ‘inflation’ to refer to the phenomenon that is an inevitable consequence of

Some commentators are of the view that whenever the economy gains strength it should be the role of the Federal Reserve to step in at some stage and introduce a tighter stance in order to prevent a general increase in the prices of goods getting out of control. However why should economic growth be positively associated with a general increases in