Profiles

Even if the Fed were to know the level of the neutral rate it could not achieve economic stability.

Recessions emerge when the central bank reverses its loose monetary stance. But the seeds of recession were sown earlier by private lending practices that grew out of central-bank money creation.

Increases in the money supply need not always be followed by general increases in prices, as prices are determined by both real and monetary factors.

The idea that money must grow in order to sustain economic growth gives the impression that money somehow sustains economic activity. But this has never been true.

As the foundation of the economy weakens, bank lending weakens also. And then money begins to disappear from the banking system.