The Fed

What causes an economic downturn? The business press keeps getting it painfully wrong, writes Llewellyn H. Rockwell, Jr.

Woodward reports that Greenspan himself was willing, on occasion, to do things that weren't strictly legal.

Earlier last year (February 17) in testimony before the House Banking Committee, Alan Greenspan argued that increases in productivity tend to create greater increases in aggregate demand than in potential aggregate supply. His reasoning was that productivity increases stimulate optimistic corporate earnings forecasts, which stimulate stock price increases, which lead consumers to assume increased personal wealth, which increases consumption (and thus aggregate) expenditure.

 If a corporation were to engage in the deceit that is the government's daily business, the SEC would intervene with severity, says Hans Sennholz

Some economists say measuring inflation is as easy as checking a thermometer. Gene Callahan debunks this view.

The Austrian Theory has come under fire; Gene Callahan responds in defense.

Neither the Fed nor Wall Street can undo the ill effects of past monetary expansions, says Frank Shostak.

With its latest move to boost interest rates, the Fed is again clouding its role as the sole source of economy-wide price increases.

Frank Shostak rebuts the claim that markets are driven to unsustainable highs by waves of investor enthusiasm. Actually, the Fed itself is the real culprit.

Like a man who douses a large pile of rags with gasoline and then warns of a fire hazard, Fed Chairman Alan Greenspan has begun issuing dire warnings of impending inflation after orchestrating several years of explosive monetary growth.