The Fed’s Open Market Committee, that supposed bulwark against monetary profligacy, has opened the floodgates with its latest move to push the federal funds rate to a forty-year low. It’s the ninth cut this year, and the one that pushes the real rate of interest 1.3 percent below the median measure of CPI. We are now waiting for just two of the
The following extract neatly sums up why monetarists and Keynesians are both wrong in their prescriptions about the need to use easy money and Big Government to boost “effective” demand. From The National Federation of Independent Business April Survey: “The economy is splitting with the services sector improving and the goods sector suffering,”
Forget Greenspan’s timorous optimism about the economy—after all, ask yourself when, in the course of the whole dirty dozen of futile rate cuts, he last talked its prospects down ? No. Just like the tired old stock promoter he is, Bookie Al always thinks better days are ‘round the corner, so puh-leeze, People, let’s perform our own analysis
Just when you thought that threat of DISINflation (a Good Thing, the Fed tells us) turning into DEFlation (A V-E-R-Y Bad Thing) had vanished and that instead we were on the verge of INflation (A Not Quite So Bad Thing), up pops another frightful creature from the Fearsome ‘Flation Family—STAGflation! For example, Bloomberg News recently ran a
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The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.