Business Cycles

Nearly two decades ago, Congressman Ron Paul identified his campaign with the call to "audit the Fed." Congress ignored him then, but the movement to examine and demystify the Fed now is growing.

As the Fed engages in rollercoaster monetary policies, the errors that build up during the Fed-induced boom turn into a veritable “circus of errors.”

Thanks to Federal Reserve intervention, apartments and apartment buildings have turned into giant malinvestments. Once again, a federal entity intervenes in markets presumably to make them work better, but things end in a crisis.

Thanks to Federal Reserve intervention, apartments and apartment buildings have turned into giant malinvestments. Once again, a federal entity intervenes in markets presumably to make them work better, but things end in a crisis.

While the Fed tries to engineer the mythical “soft landing” for the economy, Austrian economists know that this is an exercise in futility. Once the credit-fueled boom occurs, the bust logically follows.

While the Fed tries to engineer the mythical “soft landing” for the economy, Austrian economists know that this is an exercise in futility. Once the credit-fueled boom occurs, the bust logically follows.

Jesús Huerta de Soto reviews Murray Rothbard's A History of Money and Banking in the United States: The Colonial Era to World War II.

Forget the New York Times and other publications that cheerlead for the current regime. Austrian economics spells out the consequences for reckless monetary policies, and those consequences are unavoidable.

The boom-and-bust cycles are not natural to a market economy, contra Keynes. Instead, government through monetary manipulation creates them—and then politicians blame markets themselves.

Sponsored by Gregory and Jane Gandee.