Author: Mark Biernat

Mark Biernat - I write about frugality on the expense side and revenue generation ideas on the income side which can be applied to the country as a whole or your home economy.
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Natural Rate of Interest – Wicksell’s Moneyless Rate

The natural rate of interest is an unobservable hypothetical rate of interest that was conceptualized by the Swedish Economist Knut Wicksell. There were precursors to this theory, such as Henry Thorton An Enquiry into the Nature and Effects of the Paper Credit of Great Britain in 1802, however, it was Wicksell’s theory that can trace… Continue reading Natural Rate of Interest – Wicksell’s Moneyless Rate

The Real Meaning of Laissez-Faire

Laissez-faire is an economic philosophy that literally translates to ‘let do’ or ‘let go.’ It generally means ‘leave it alone’ in reference to economic policy. Laissez-faire is an import word from the French because the genesis of modern economic thought connected to these ideas was physiocrats in the 18th-century. However, these ideas go back to… Continue reading The Real Meaning of Laissez-Faire

What are the Causes of Inflation?

Inflation is a monetary phenomenon. Inflation can be defined as an aggregate increase in the prices or a decrease in the purchasing power of money. A price level change can be sustained or temporary. Inflation is sustained. Increases in the price level from exogenous shocks do not continue to increase prices generally. In contrast, when… Continue reading What are the Causes of Inflation?

Keynesian vs. Austrian Business Cycle Theory – Explained

I often ask my class to compare the Keynesian explanation for the business cycle compared to a monetary or Austrian explanation of a business cycle. I am primarily looking for the theory, rather than policy recommendations. I am looking for objectivity and positive economic analysis. Here are my class notes summarized in pdf. If you… Continue reading Keynesian vs. Austrian Business Cycle Theory – Explained

Stock market crash prediction

Markets are hard to predict but economics give insight to the future direction of the stock market. Update: The market has not crashed yet because the Fed keeps pumping money and might do so until after the 2020 election. It is political. macroeconomic data moving averages or trends analysis quantitative valuations I am getting a… Continue reading Stock market crash prediction