Bob Explains the Highlights of His New QJAE Article on Fractional Reserve Banking
Bob shows why Ludwig von Mises thought any issuance of fiduciary media caused the boom-bust cycle.
Bob shows why Ludwig von Mises thought any issuance of fiduciary media caused the boom-bust cycle.
The negative consequences of expansionary monetary policies take a while to show up, but Deutsche Bank's collapse may be the first sign of failure.
Even if business people learn to expect easy-money caused bubbles and busts — this would still not prevent the formation of a boom-bust cycle.
Inflation can always give only a temporary fillip to the economy, and will leave us with a legacy of postponed adjustments and new maladjustments which make our problem more difficult.
The “boom-bust” cycle is generated by monetary intervention in the market, specifically bank credit expansion to business.
Creative design of statistics cannot solve the persistent crisis. The core of the problem lies in a misguided economic policy that zombifies the Japanese economy and thus undermines prosperity.
The world now has the impossible choice of permanently reduced productivity and slower economic growth — or the mass bankruptcy of a significant percentage of the economy.