Fiscal Theory

Interviewed by host Alan Butler, Mark Thornton discusses monetary and fiscal policy.

Recorded at Mises University 2013.

Recorded at Mises University 2013.

Bruce Bartlett recently lamented that we need more Keynesian medicine to fix the US economy.

In effect, the government’s not taking is alleged to be giving. Its not taxing is alleged to be spending.

If the economy improves, the banking sector will increasingly loan out its reserves and bring inflationary pressure to prices. If the economy does not
    improve, the Fed will not be able to unload the low-quality assets on its balance sheet, and thus the inflationary pressures will remain. The so-called
    win-win solution to the crisis has become a lose-lose scenario.

Bernanke's recent drastically inflationary move is based on a fundamental misunderstanding of how wealth is created and can only make things worse.

Presented at the Mises Circle in Manhattan, hosted by the Ludwig von Mises Institute and sponsored by the Story Garschina Charitable Fund, and Anon

The average yearly rate of growth in Estonia stood at 8.4 percent in 2011 against overall eurozone performance of 1.5 percent.

The damage inflicted on the economy by reckless monetary and fiscal policies cannot be fixed by further aggressive monetary pumping.