Austrian Economics vs. Bernanke’s Economics

Economists of the Austrian School of economics define inflation differently than much of the mainstream of the economics profession, writes By Gary Danelishen. The typical mainstream intermediate macroeconomics textbook defines inflation as “an increase in the overall level of prices.” Ludwig von Mises, suggested otherwise. A recent exchange between Congressman Ron Paul and Ben Bernanke took place during Bernanke’s testimony before the Congressional Joint Economic Committee on November 8, 2007. Congressman Paul, instead of referring to either the PPI or CPI, referred to the MZM money aggregate. He likened the Fed to a price fixer. FULL ARTICLE