George Reisman explains “good deflation”, the virtues of a stable supply of money and what occurs with increases in productivity. This explanation, thoroughly “Austrian”, goes against conventional economic “wisdom”.
Posts Tagged ‘monetary’
Hayek, the Business Cycle and the Financial System
In “Monetary Theory and the Trade Cycle” Hayek holds that the business cycle is caused by fractional-reserve banking, which is a natural credit organization formed out of the market. If this is the case, then it follows that economic cycles are an intrinsic part of capitalism.
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.
China’s Bubble Economy Re-Appears
China’s economic growth is turning out to be just another financial bubble ready to pop. The lesson is clear: monetary expansion causes economic instability. This bursts two theoretical bubbles: one, that instability is inherent in global capital markets, and two, that we are preparing to lift out of recession.
The Case Against the Issue of Fiduciary Media
Ludwig von Mises on the issue of fiduciary media, from his first book on the topic of money: “The Theory of Money and Credit”.
