privacy, even to the point of scheming to stamp out cash. But Swiss financial innovation knows no bounds. To meet the intensifying demand for financial privacy unstable banks, negative interest rates and other “unconventional” monetary policies, Swiss entrepreneurs have purchased and refurbished former military bunkers
that its price might be used as a metric for evaluating the quality of monetary policy. What happened? The roof fell in. Brad DeLong of Keynesian fame called right away: free the market to create its own gold standard by permitting true innovation and choice in currency. It’s a fair guess that opponents of the gold
exchange rate, this could only be the result of a relatively inflationary monetary policy and not of some “structural” real cause. Finally, although Mundell, in his of real world institutions. Despite his significant shortcomings in monetary policy (as well as in fiscal policy where he favors tax-cut fueled budget deficits), regions so defined continually change. That is, relative prices, new discoveries, innovations, the supply and demand of complements and substitutes are in a continual
where business venture becomes largely a speculation on the future of monetary policy. (p. 55) If we examine the balance sheet of the US Federal Reserve (Fed), we convertibility, countries had to regain control of both money and fiscal policies and achieve macroeconomic stability. As long as the fiscal deficit was out a true improvement in competitiveness, which emanates from productivity gains and innovation. There is plenty of evidence that the gold standard improved
demanding a halt to the mistakes that planners continuously make. This deceptive policy can last only for a limited time. Ultimately, the market proves more powerful system, but common sense should tell us that grave dangers lie ahead. Their policies strive to convince the unknowing that the dollar is strong and its status as the dollar price of gold and deciding who gets to hold gold was official policy. This advanced the Federal Reserve’s original goal of demonetizing precious
What is the Mises Institute?
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.