Relevant and even prescient commentary on news, politics and the economy.

Net Profit Rate look at Japan

The data in this post was updated from errors. Correct data below. As net profit rates rise in the aggregate, pressures for firms to raise prices to cover opportunity costs of capital decrease. So why is inflation in Japan so low? Have net profit rates increased there since the 1980’s? Let’s take a quick look. […]

Effect of High Net Profit Rate on Inflation & Interest Rates

I have been twittering a chart this morning which puts inflation alongside the net profit rate. Net profit rate = Corporate profits/GDP – effective Fed rate This measure is based on Keynes Marginal Efficiency of Capital. MEC. As net profit rates went down in the 1970’s, firms felt pressure to raise prices to protect their […]

Reflections on Anwar Shaikh: Equation for Corporate Profit Rate

A couple weeks ago, I found the work of Anwar Shaikh. Briefly, he has developed unique and better models to describe the economy, so that there is no need to use rational expectations, utility functions, monopoly power, and much more. He describes the economy as always developing around the central aspects of Real Competition and […]

The Brilliance of Anwar Shaikh

Recently I found the work of Anwar Shaikh. His views on economics are the most insightful and thorough I have ever seen.  He is questioning and re-formulating economic theories through history. He is arriving at conclusions that are more realistic and integrative. He should lead the way to how economics should be taught in the […]