This article provides a macro-foundation for why the specific value of 2% is a valid inflation target. The approach postulates that innovations generate transactional cost savings by comparison to barter. The optimal velocity of money is derived as a function of productivity growth and of...

An influential strand of recent research has claimed that large governments in European countries explain their weaker long-term economic performance compared to the U.S. On the other hand, despite these alleged costs, large governments have been popular with electorates. This paper seeks to...

New Zealand’s unrelenting current account deficits, its trade performance and high external debt level remain central to ongoing economic policy debates. However, what has been overlooked in the discussion of New Zealand’s economic relations with its trading partners is the positive...

This paper presents a simple framework for analyzing the macroeconomic effects of internal and external shocks under polar exchange rate regimes. It highlights the significance of fluctuations in competitiveness and real income for exchange rate policy, revealing that positive (negative) real...

This article is a comparative study of the treatment of domestic labor by neoclassical and Marxian economists. Before 1960, mainstream economics concentrated on production for the market, with serious analysis of housework confined to a handful of economists, whose efforts in this regard were...

The paper focuses on macroeconomics understood as a major part of economic science concerned with the whole economic system involving such variables as aggregate (total) production, national income, added value, gross domestic product, gross national product, economic growth, aggregate...