Monetary Theory

Recorded at Mises University 2009.

By piling on trillions to the national debt, the government will have to keep interest rates low for a longer period, promoting ever-greater debt. The result of this must be unsustainably higher levels of debt — and the worst financial crisis ever seen in the history of mankind.

Recorded at Mises University 2009.

Recorded at Mises University 2009.

Recorded at Mises University 2009.

Almost invariably, furthermore, the union is not trying to discover the market rate, but to impose various arbitrary "principles" of wage determination, such as "keeping up with the cost of living," a "living wage," the "going rate" for comparable labor in other firms or industries, an annual average "productivity" increase, "fair differentials," and so forth.

Careful examination shows that, rather than protecting the economy, it is loose monetary policies that are the key source of boom-bust economic cycles.

It is savings — not demand — that enables the expansion of production of goods and services.

Professor White's lecture showed that, historically, a free-market approach to the banking industry is less prone to crises and operates efficiently through the invisible hand of the market.

Freedom works; market prices guide people to make the necessary adjustments after a big surprise.