After central bank expansionary efforts have unleashed inflation, officials then seek to contract the money supply in an attempt to undo the inflationary damage. No contractionary policy, however, can fix the problems caused by monetary manipulation.
Interest rates should be determined by the market, according to its needs, to operate efficiently and effectively distribute society’s financial resources.
According to mainstream economists, inflation aids economic growth while deflation impairs growth. Austrian economists, however, point out that in much of US history, economic growth was accompanied by deflation.
Through its coercive monopoly over money creation, government constantly engages in silent theft through inflation, all done in the name of “stimulating” the economy.
Was Jackson’s victory over the Second Bank of the United States a triumph for liberty, or did it merely expand federal authority under the guise of constraining it? His legacy is complicated, but there is much we can learn from it.
Was Jackson’s victory over the Second Bank of the United States a triumph for liberty, or did it merely expand federal authority under the guise of constraining it? His legacy is complicated, but there is much we can learn from it.
According to mainstream economists, inflation aids economic growth while deflation impairs growth. Austrian economists, however, point out that in much of US history, economic growth was accompanied by deflation.
Lower interest rates can help promote economic growth—as long as those rates are determined by the market and not by political edict.
Inflation isn’t just about higher prices. It is how unwarranted increases in the money supply touches off wealth transfers from those who are less-well off to people who are close to the new injections of money into the economy.
Why do independent central banks exist in the modern economy? It was originally thought independent central banks would prevent government extravagance from creating inflation.
