The Current US Economic Situation from an Austrian Viewpoint

This article is a brief analysis of the US economic situation from the point of view of the Austrian School of Economics. It is strictly macroeconomic: a deductive hypothesis of what is happening in the aggregates.

Let us place ourselves in the months immediately after the arrival of covid-19, the first quarter of 2020. As an economic policy measure, the US government decided to increase the money supply. Through different mechanisms, they put an unprecedented amount of money into the economy. This caused three important effects.

Israel War Adds to Global Turmoil

The surprise terrorist attack on Israel by Hamas has created a new geopolitical crisis with many unexpected implications. We cannot forget the hundreds of people that have been killed in this attack—a terrible loss of innocent lives. In markets, the Key Tel Aviv share indices declined around 7% and sovereign bonds slumped by 3% after the bloodiest attack on Israel in many years.

Naomi Wolf

Naomi Wolf is an American author and journalist.