than total US annual production! Chinese economists generally attribute this policy failure to the difficulty of “system reform” — administrative change designed Unlike extensive growth, which is at least amenable to central planning, the innovation required for intensive growth relies on what Hayek referred to in his
on real factors, who deserves the credit? The widespread assumption is that some “policy“ must be the reason. Hence, Democrats credit Clinton; Republicans credit ball bearing. It is free markets that give full scope to entrepreneurs to innovate, organize efficient operations, and create wealth. There is no such thing as Recent experience only confirms that new technologies result from freedom and that innovation changes nothing about economic principles. 6. The WTO manages trade.
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
of any particular kind being regarded as interchangeable. The next step after the innovation of classified money was the development of the parallel standard. This of money has become a common medium of exchange in commerce generally. A monetary policy can never be carried out merely by legislative means, by an alteration in the
sell to the electorate as the direct result of their leadership and good economic policies; state budget bureaucrats are astonished to find that every year public on a massive scale, of new technologies and significant entrepreneurial innovations which, were it not for the “money and credit injection,” would have given which tend to make recessions in Europe longer and more painful). The expansionary policy of the European Central Bank, though not free of grave errors, has been
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.