Tag Archives: One

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. Continue reading

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Shift to Keynesian Economics

My comment on Paul Krugman’s latest blog post (Why Economics Is the Way it Is): Dear Dr. Paul Krugman, You are only partially correct. The shift in mentality (for the United States), I believe, came during the First World War. … Continue reading

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Taxes Discourage Production

A chapter from Henry Hazlitt’s “Economics in One Lesson”. Hazlitt explains why taxation will discourage investment and production, disallowing new jobs from being created and perpetuating unemployment. Continue reading

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