Central Banks

Dr. DiLorenzo has some words for Secretary Bessent about the true role of the Fed and its record in this open letter.

Dr. DiLorenzo has some words for Secretary Bessent about the true role of the Fed and its record in this open letter.

The Efficient Market Hypothesis claims that financial markets process information immediately and correctly. However, since the EMH is based upon unrealistic assumptions, we also have to question the efficacy of this hypothesis, especially when central banks intervene in the markets.

The Efficient Market Hypothesis claims that financial markets process information immediately and correctly. However, since the EMH is based upon unrealistic assumptions, we also have to question the efficacy of this hypothesis, especially when central banks intervene in the markets.

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.