Block and Barnett on whether the Hayekian triangle—the popular device used to illustrate how artificially low interest rates lead to an unsustainable boom—can be salvaged or should be abandoned altogether.
Central banks’ economic models predict deeper negative rates are necessary in the event that a significant recession materializes. This would be a disaster.
To understand what an inverted yield curve means, you must first understand what the yield curve is.
People do not save and accumulate capital because there is interest. Interest is neither the impetus to saving nor the reward or the compensation granted for abstaining from immediate consumption. It is the ratio in the mutual valuation of present goods as against future goods.
A private graduate seminar presented at Mises University 2019.
Ignoring time preference is the fundamental error behind monetary planning. It is why in a successful economy, monetary intervention by the state is kept to a bare minimum, or preferably banished altogether.
