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Tag Archives: contraction
The Dangerous “Lessons” of 1937
The recession of 1937 provides a perfect case study to offer a vision of the future based on our current fiscal and monetary policies. It turns out that high government spending and intervention, mated with an inflationary monetary policy, caused the severe downturn of 1937. We are headed down that same road. Continue reading
The Possibility of Postponing the Eruption of the Crisis: The Theoretical Explanation of the Process of Stagflation
The arrival of the economic recession can be postponed if additional loans unbacked by real saving are granted at an ever-increasing rate, i.e., if credit expansion reaches a speed at which economic agents cannot completely anticipate it. This strategy is condemned to inevitable failure and involves a huge additional cost: once the recession hits, it will be much deeper and much more painful and prolonged Continue reading
Posted in Theory
Tagged bust, contraction, Credit, Depression, Expansion, Huerta, Hyperinflation, Jesús, macroeconomics, Recession, Soto, stagflation
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