Monetary Theory

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Understanding Relationships between Money Supply and Liquidity

Monetary TheoryMoney Supply

Blog05/17/2023

Can the injection of new money into the economic system enhance economic growth? Not really. Increasing (or decreasing) the money supply affects the demand for money but doesn't make us wealthier.

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Is There an Optimum Growth Rate of Money?

InflationMonetary PolicyInterventionismMonetary TheoryMoney and Banking

Blog05/10/2023

Monetarists believe there is an optimum growth rate of money. However, a fiat money system itself is unstable, so there is no optimum growth rate.

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Is It Real Money or Just Artifice?

Monetary PolicyMoney and BanksMonetary TheoryMoney and Banking

Blog03/29/2023

Money proper is not artifice. It is a physical "thing" of value, acquired through labor and emerging out of the needs of individuals, who through voluntary exchanges determine its value.

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Forget the Liquidity Trap—Loose Monetary Policies Cause Recessions

KeynesMonetary PolicyBusiness CyclesMonetary Theory

Blog02/21/2023

At the heart of Keynesian business cycle theory is the so-called liquidity trap. Contra Keynes, however, economies don't falter because a sudden increase in the demand for money.

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It's Never Too Late to Begin Protesting against the Proposed Central Bank Digital Currency

Monetary PolicyInterventionismMonetary Theory

Blog02/03/2023

The proposed central bank digital currencies are not a new and convenient high-tech form of money. Instead, they are yet another power grab by government authorities, continuing the shameful history of government corruption of money.

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How Fast Should the Money Supply Grow?

InflationMonetary PolicyMonetary Theory

Blog01/30/2023

As Murray Rothbard wrote, inflation is not an increase in prices. It is, instead, an increase in the supply of money in circulation. The distinction is important.

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Do Correlations Help Define Money?

The FedMoney and BanksGold StandardMonetary Theory

Blog01/28/2023

Monetary authorities have come up with numerous clever ways of measuring money. However, they are unable even to define money, much less measure it.

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The Modern State Cannot Exist without Fiat Money

U.S. HistoryBusiness CyclesGold StandardMonetary Theory

Blog01/19/2023

Fiat money is the fuel of the modern Leviathan state. If we wish to have freedom, we must have sound money.

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