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The real impact of advances in technology on global welfare is an unresolved issue. According to a recent Human Development Report, globalization based on technical advances in information technology has not had a positive impact on economies of developing countries. While advances in technology have helped improve standards of living in industrialized countries, they have caused developing countries to further lag behind. Some other studies, however, have concluded that investment in technology is a critical factor in improving economic welfare of all countries. It is important to note that most of the empirical studies in the latter group have treated technology investment as an independent variable explaining growth in economic welfare. In this paper, we argue against the notion that investment technology is an independent variable explaining welfare in developing countries. In section one, we present logical reasons why technology in itself fails to create better standards of living in developing countries. In section two, we will use a cross sectional simple regression model to test the relationship between advances in technology and economic welfare in developing countries. The results of our empirical study confirm our arguments of section one that global technological advances have not helped the economies of developing countries.

The purpose of this paper is to provide logical and empirical explanations as to why monetary policy is ineffective with respect to affecting mortgage rates, and thus investment and aggregate demand.

Logical and empirical evidence is provided in support of the hypothesis that changes in the money supply have no significant impact on interest rates in general, and particularly on mortgage rates. This empirical analysis is based on a simple regression of changes in mortgage rates on changes in the money supply, and covers the 1990‐2004 period.

Support was found for our hypothesis that changes in money supply have no significant impact on interest rates.

The conclusion of this paper should be incorporated in all macroeconomics textbooks. Lack of such analyses may leave a confusing or misleading impression about economic theories in the mind of economics students.

One should not rely on monetary policy as an effective tool of stabilization policy.

The message of this paper is to readers of macroeconomics textbooks. This paper has an original value in that it communicates to readers that most macroeconomic textbooks fail to provide detailed and clear explanations as to why very frequently monetary policy does not achieve its objective of stabilizing the economy.