I conclude with an important final warning: naturally (and I must never tire of repeating it) the solution I propose is only valid in the context of an irrevocable decision to establish a free-banking system subject to a 100% reserve requirement on demand deposits.
Presented at the Mises Institute’s first conference, November 16-17, 1983; in Washington, DC.
Presented at the Mises Institute’s first conference, November 16-17, 1983; in Washington, DC.
People must relearn that free-market money, or sound money, as Mises put it, is the indispensable element for preserving the free societal order.
What is amazing about America circa 2008 is not the citizens' money illusion — history has seen that aplenty — but the utter lack of resistance to it.
We can thus conclude that the gold standard, if not abused, is not conducive to boom-bust cycles.
The restoration of monetary freedom would also force a sharp reduction in the size and power of government.
Google Trends records a massive increase in searches for Austrian economics, with the leading city for most such searches being Washington, DC, but extending to all areas of the world.
