"This myopic focus on 'price stability' made policymakers blind to other possible pitfalls, such as the surge in credit and the rapid growth in asset prices, and the concomitant misallocation of resources led on by distorted price signals."
Copernicus became the first person to set forth clearly the “quantity theory of money,” the theory that prices vary directly with the s
The true tragedy of a fiat money regime is that bogus economic growth by way of monetary and fiscal stimulus can go on only until either the collapse of hyperinflation brings an end to the artificial boom or the amount of accumulated debt makes state bankruptcy inevitable.
"An excessive quantity of money," he opined, "should be avoided."
With an inflationary or deflationary policy, a government does not promote the public welfare, the commonweal, or the interests of the whole nation
Deflationary policy is costly for the treasury and unpopular with the masses. But inflationary policy is a boon for the treasury and very popular with the ignorant. Practically, the danger of deflation is but slight and the danger of inflation tremendous.
It shouldn't come as a surprise if it eventually turns out that the real danger is, like so often in the past, inflation rather than default.
There is no "socially desirable" level of work or of saving and investment other than what individuals freely choose as desirable. And unless the case for "supply-side" economic reform is modified to reflect an argument for individual freedom, it may very well serve as a means for even greater state control over the economy and not less.
Recorded at Jekyll Island, Georgia; 27 February 2010.
