Central Banks Are Destroying Our Economies
Central banks intervene in order to “create demand,” and then they intervene in order to try to mitigate the damage they caused earlier. This is a never-ending scenario of economic destruction.
Central banks intervene in order to “create demand,” and then they intervene in order to try to mitigate the damage they caused earlier. This is a never-ending scenario of economic destruction.
Keynesian economists have no good explanation for stagflation, rising rates of both inflation and unemployment. However, the Austrian School has long pointed out that sustained inflation has a predictable pattern that leads ultimately to stagflation.
State-sponsored fiat money has been the norm for more than ninety years, but its very instability makes it vulnerable to a regime of sound money.
Keynesian economists believe that the key to increasing economic growth is increasing the supply of money in circulation. Money, however, is a means of exchange, not a means of payments. The difference is vital to understanding economics.
Central banks intervene in order to “create demand,” and then they intervene in order to try to mitigate the damage they caused earlier. This is a never-ending scenario of economic destruction.
Contrary to mainstream economists, credit expansion that is not backed by real savings leads ultimately to an economic downturn.
As the US economy falters and people continue to fall behind, the Austrian business cycle theory provides the best explanation for what is happening, even if the elites don't want to hear it.
Contrary to mainstream economists, credit expansion that is not backed by real savings leads ultimately to an economic downturn.
So, take solace chocolate lovers, while higher prices caused by the Federal Reserve are probably here to stay, the market is doing what it can to make sure that everyone has chocolate.
The Friedrich A. Hayek Memorial Lecture. Sponsored by Donald and Judy Rembert.