Economic growth results from increasing production, and the money supply is always sufficient to foster exchange. The boom-bust cycle only occurs when production is distorted by a growing money supply.
Economists have tried to explain business cycles as well as fluctuations in the economy, but over the past two centuries, the explanations have fallen into two areas.
Murray Rothbard’s number one rule in an economic crisis is for the government not to interfere with the market’s adjustment process. Doing so will only perpetuate the crisis.
When people are scared they let the authorities get away with all sorts of nonsense. We're seeing this with the Federal Reserve right now.
The massive bailout of indebted sectors that already had overcapacity and were in process of obsolescence may also drive the largest wave of malinvestment in decades. If the previous recoveries came with poor wage and capital expenditure growth and high debt, the next one will likely be even worse.
The massive bailout of indebted sectors that already had overcapacity and were in process of obsolescence may also drive the largest wave of malinvestment in decades. If the previous recoveries came with poor wage and capital expenditure growth and high debt, the next one will likely be even worse.
The 1958 pandemic killed twice as many people as COVID-19 has so far. Yet, the economy in 2020 has collapsed far worse than either in 1958 or the far worse pandemic of 1918.
Now, more than ever, we're in uncharted waters when it comes to central banks and monetary policy. Economist Brendan Brown takes a look at where we are and what the future might hold for central banks' race to the bottom.
Paul Krugman is now claiming that reopening the economy and allowing people to go to work almost surely will cause a depression.
Paul Krugman is now claiming that reopening the economy and allowing people to go to work almost surely will cause a depression.
