Monetary theory posits that a change in money supply is a key driver of economic activity. A simple formula, the equation of exchange, governs monetary theory: MV = PQ.

But basing policy on classical economic theory is like basing a contract on philosophy. Effective policy cannot be built from idealized conjectures; it demands realism, and actual facts.

In this column, venture capitalist Nick Hanauer critizes the theory that a higher minimum wage will cause increased unemployment. Going further, he suggests that economic theories in general are ...

Demand theory relates to the relationship between consumer demand for goods and their prices. More demand can cause higher prices; less demand can reduce them.

The former secretary of state's economic philosophy "calls for corporations to put less emphasis on short-term profits that increase shareholder value and to invest more in employees, the ...

Even now, the theory of increasing returns is as important as ever: It’s at the heart of the success of companies such as Google, Facebook, Uber, Amazon, and Airbnb.

This Economic Theory Explains Why TV Viewership Is Shrinking–And How Competitors Sink One Another. ... examples of a lack of a Nash Equilibrium and need for strategy adjustment are everywhere.

One of my favorite examples of economists’ ineffective role in public policy is free trade, which we have been touting since the British classical economist David Ricardo laid out his theory of ...

What is an economic supercycle? An economic supercycle typically refers to a prolonged period of expansion, which can last as long as a few decades. Some ...

If an economist’s first instinct in researching the effects of minimum-wage laws is to gather data on unemployment and the number of jobs, he needs a price theory refresher. We are not the first to ...