These were the most-read Mises Daily articles during the month of May 2015:
1. Financial Warfare and the Declining Dollar by Ryan McMaken
2. Seven Changes Needed in Ferguson and Baltimore Right Now by Mark Thornton
3. Why Do We Celebrate Rising Home Prices? by Ryan McMaken
VII. Deposit Banking
1. WAREHOUSE RECEIPTS
VI. Loan Banking
We have so far seen how price levels are determined, showing how they are set by the interaction of the supply of and demand for money. We have seen that the money supply is generally the dominant force in changing prices, while the demand for money is reactive either to long-term conditions or to changes in supply. We have seen, too, that the cause of our chronic inflation is continuing increases in the supply of money, which eventually generate inflationary expectations that aggravate and accelerate the inflation.
V. The Demand for Money
Let’s analyze the various elements that constitute the public’s demand for money. We have already seen that the demand curve for money will be falling in relation to the purchasing power of money; what we want to look at now is the cause of upward or downward shifts in that demand curve.
1. THE SUPPLY OF GOODS AND SERVICES
In this essay from 2001, Lew Rockwell discusses what were then new mandates on banks to spy on all depositors and investors. Such efforts are now commonplace, of course, and have merged into the current war on cash.
Spy vs. Spy
by Lew Rockwell
In an interesting article at the NY Observer, Bernie Quigley suggests that the rise of Scottish nationalism (and the SNP’s victories in the most recent election) has led to a rise of English nationalism:
IV. The Supply of Money
To understand chronic inflation and, in general, to learn what determines prices and why they change, we must now focus on the behavior of the two basic causal factors: the supply of and the demand for money.
III. Money and Overall Prices
1. THE SUPPLY AND DEMAND FOR MONEY AND OVERALL PRICES
When economics students read textbooks, they learn, in the “micro” sections, how prices of specific goods are determined by supply and demand. But when they get to the “macro” chapters, lo and behold! supply and demand built on individual persons and their choices disappear, and they hear instead of such mysterious and ill-defined concepts as velocity of circulation, total transactions, and gross national product. Where are the supply-and-demand concepts when it comes to overall prices?
