First, we must define inflation: it is the increase in the quantity of money, currency, and credit. It is not an increase in prices. Changes in the general price level is the consequence of a combination in changes of the quantity of deposit currency and changes in the level of the public’s retention of deposit currency relative to their
Now that interest rates are rising with much further to go, the global banking system faces a crisis on a scale like no other in history. Central banks loaded with financial securities acquired through QE face growing losses, and their balance sheet liabilities are now significantly greater than their assets—a condition which in the private sector
Bank lending is contracting, and it is important to understand why. At this stage of the credit cycle, which began expanding following the aftermath of the Lehman crisis over a decade ago, a sharp contraction of bank credit to nonfinancials is normal. It is what drives periodic recessions, slumps, and depressions, and monetary stimulus by central
President Reagan memorably said that the nine words you don’t want to hear are “I’m from the government, and I’m here to help.” Governments in all the major jurisdictions are now making good on that unwanted promise and are taking responsibility for everything from our shoulders. Those receiving subsidies and loan guarantees are no doubt grateful,
Los préstamos bancarios se están contrayendo, y es importante entender por qué. En esta etapa del ciclo crediticio, que comenzó a expandirse tras las secuelas de la crisis de Lehman hace más de un decenio, es normal que se produzca una fuerte contracción del crédito bancario a entidades no financieras. Es lo que impulsa las recesiones, caídas y
El presidente Reagan dijo de forma memorable que las ocho palabras que no quieres oír son «Soy del gobierno, y estoy aquí para ayudar». Los gobiernos de todas las principales jurisdicciones están cumpliendo esa promesa no deseada y están asumiendo la responsabilidad de todo desde nuestros hombros. Los que reciben subsidios y garantías de préstamo
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.