Monetarists have long believed that the Fed should pursue policies of low inflation in order to counter the effects of lower prices through enhanced productivity. Thus, they reason, overall prices will remain stable. Such policies actually promote economic instability.
Monetarists have long believed that the Fed should pursue policies of low inflation in order to counter the effects of lower prices through enhanced productivity. Thus, they reason, overall prices will remain stable. Such policies actually promote economic instability.
Alex Pollock, an expert on Federal Reserve policy, joins us to talk about how the Fed has backed itself into a very bad financial corner, and there is no painless way out.
Bitcoin and gold are now playing the essential role that central banks should be enforcing.
The mainstream economic belief is that a growing economy needs a growing money supply to ensure “price stability.” Austrian economists, however, believe that there is no “optimum” money supply, which means government should not engage in monetary expansion.
A free market economy does not generate jobs or money. Instead, it creates wealth through exchange and production. Government intervention, contrary to what mainstream economists believe, does not enhance wealth, but instead destroys it.
A free market economy does not generate jobs or money. Instead, it creates wealth through exchange and production. Government intervention, contrary to what mainstream economists believe, does not enhance wealth, but instead destroys it.
The central bank monetary shenanigans in both Europe and the US no longer can be ignored or covered up. Unfortunately, as their economies falter, the Fed and the European Central Bank will resort to even more financial trickery to cover for previous monetary foolishness.
According to Keynesian “economics,” central bank interest rate cuts will make the economy stronger—unless the economy is in a “liquidity trap.” The truth is that these kinds of monetary tricks actually weaken the economy.
American history classes typically teach that the original transcontinental railroad was a major triumph. What they don‘t say is that it was a product of corporate welfare that created economic problems later on.
