Perhaps most importantly, the very source of the crises would remain in place: the concept of "price index targeting," which rests on the erroneous "stabilization" idea, a concept that is in full contradiction to the notion of free markets: "Human action originates change. As far as there is human action there is no stability, but ceaseless alteration."
My disagreement with Ms. Baum regarding central banking is at base a disagreement about what exactly is money and credit.
Both Phelps and another Nobel Laureate Milton Friedman have introduced more confusion rather than clarity regarding the explanation of the phenomenon of stagflation.
In this article we have shown that causality cannot be established by statistical means without a coherent definition of what money is and how it is related to the prices of financial assets. Contrary to various experts who dismiss the importance of money in driving the stock prices, we have shown that this dismissal is based on a wrongheaded framework of thinking.
In other words, in seeking to boost sales by exploiting the possibilities of modern finance (in a perfectly legal manner), GMAC and Ford Motor Credit, GE and John Deere (among countless others) may have misled our preening, erstwhile Maestro into financing the whole wasteful bubble of the late 1990s!
Thanks to Sarbanes-Oxley,
Danilo Nogueira provides a brief history of the Brazilian inflation in The Language of Inflation
Gold is not money, writes Sean Corrigan, and this is one reason we are on a path where genuine entrepreneurialism and the creation of real wealth are very much hampered.
