By most commentators, since the early 1980s, correlations between various definitions of money and national income have broken down. The reason for this breakdown, it is held, is financial deregulation that made the demand for money unstable. Because of financial deregulation the nature of financial markets has changed; consequently, past
By popular thinking, the key driver of economic growth is increases in the total demand for goods and services. It is also held that the overall economy’s output increases by a multiple of the change in expenditure by government, consumers and businesses. The popularizer of this way of thinking John Maynard Keynes, wrote, If the Treasury were to
On Friday February 9, 2018, the Dow Jones Industrial Average closed at 24,190.9 a decline of 1,958.49 points from the end of January 2018 or a decline of 7.5%. The S&P500 fell during this period from 2,823.81 to 2,619.55 – a decline of 7.2%. Most commentators are trying to assure stock market participants that this correction is normal by drawing
In response to the economic paralysis brought about by the coronavirus, the Chinese central bank has pumped $243 billion into financial markets. On Monday, February 3, 2020, China’s equity market shed $393 billion of its value. Most experts are of the view that in order to counter the damage that the coronavirus has inflicted, loose monetary
What matters for the stock market is not the state of the real economy as such, but the state of monetary liquidity. In fact, bad economic conditions can actually be good for stocks. This is because monetary liquidity is determined by the interaction between the demand for money and the supply of money, the latter of which is associated with a
According to mainstream thinking, the central bank is the key factor in interest rates. By setting short-term interest rates, it is argued that the central bank can influence the entire interest rate structure by creating expectations about the future course of its interest rate policy. In this way of thinking interest rates are set by the central
Según la mayoría de los comentaristas, desde principios de la década de 1980, las correlaciones entre las diversas definiciones de dinero y la renta nacional se han roto. La razón de esta ruptura, se sostiene, es la desregulación financiera que hizo inestable la demanda de dinero. Debido a la desregulación financiera, la naturaleza de los mercados
Según el pensamiento popular, el principal motor del crecimiento económico es el aumento de la demanda total de bienes y servicios. También se sostiene que la producción global de la economía aumenta por un múltiplo de la variación del gasto del gobierno, los consumidores y las empresas. El popularizador de esta forma de pensar, John Maynard
En respuesta a la parálisis económica provocada por el coronavirus, el banco central chino ha inyectado 243.000 millones de dólares en los mercados financieros. El lunes 3 de febrero de 2020, el mercado de valores de China se desprendió de 393 mil millones de dólares de su valor. La mayoría de los expertos opinan que para contrarrestar el daño que
Lo que importa para el mercado de valores no es el estado de la economía real como tal, sino el estado de la liquidez monetaria. De hecho, las malas condiciones económicas pueden ser realmente buenas para las acciones. Esto se debe a que la liquidez monetaria está determinada por la interacción entre la demanda de dinero y la oferta de dinero,
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.