Recession this year

Obama got reelected because Americans have settled. The majority has concurred that 8% unemployment and a $10 dollar an hour job with no benefits is the new reality. Well I do not like to be the one to spoil the surprise, but there is a brave new world, a new economy is around the corner […]

Wicksell expectational business cycle model

Knut Wicksell developed a model for understanding price movements based on the divergence of the observed bank rate of interest and marginal productivity or capital or lets say the profit rate. variations of this idea was developed by the Austrian school of economics to explain business cycles. That is disequilibrium in the monetary markets create […]

Cost based pricing vs. Value based pricing – How naive are you about economic justice?

I believe the heart of the misunderstandings about economic justice and fairness is a misunderstanding about what a price is. Many people on all sides of the political spectrum have passionate views about economic justice and what this represents? It determines who to vote for and how the economy should develop. The central question is […]