Cantillon Effects and the Politics of Money Creation

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Tags: Cantillon, Monetary Theory, Money Supply

04/02/2026 Robert P. Murphy

This week, Bob explains Cantillon effects: the insight that new money doesn’t raise all prices equally or simultaneously, but flows through the economy in a sequence that benefits early recipients at the expense of everyone else. Then, he shows why this phenomenon is the foundation on which the entire Austrian theory of the business cycle is built.

Related:

Richard Cantillon, An Essay on Economic Theory: Mises.org/HAP544a

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