Central banks claim that their main purposes are to help an economy maintain high rates of employment and price stability. Ironically, they claim to do this through inflation targets.
Why does money have value? Typical economists claim that money is valuable because the government declares it so. But that is impossible, given the true origins of money, which are best explained by Austrian economists.
Most government intervention into currency exchange rates create more problems than they solve. Japan's lost decades are a prime example of what can happen.
Logical positivism holds that theory is irrelevant to the empirical results. It is the other way around; One cannot understand or interpret economic data until one has a working economic theory in place.
The Fed’s tampering with market signals undermines the process of wealth generation, thereby exerting an upward pressure on the time preference interest rate and the market interest rate.
Now that inflation is the highest it has been in four decades, the monetary authorities are trying one trick after another. Only ending artificially low interest rates will help.
The latest bout of inflation has exposed how central banks around the world have used easy money policies to help cover for the economic drag created by the regulatory state.
