Inflation

If we choose to break the state monopoly of money and allow private digital currencies to compete, a myriad of different solutions will emerge to serve a myriad of different needs.

Like during the 1930s, governments are turning to new programs and schemes that will only prolong the crisis and makes things worse.

Bad theories have a long life in the social sciences, and the crude quantity theory of money is one that refuses to go away.

Like during the 1930s, governments are turning to new programs and schemes that will only prolong the crisis and makes things worse.

The new Keynesian recommendation for monetary policy is to “stabilize the growth of aggregate demand.” In plain language this means that the monetary authorities should never stop flooding the economy with paper money.

Bad theories have a long life in the social sciences, and the crude quantity theory of money is one that refuses to go away.

The real problem with inflation, properly understood is that it is essentially a wealth transfer away from the most productive parts of the economy. This causes bubbles and economic fragility.

The real problem with inflation, properly understood is that it is essentially a wealth transfer away from the most productive parts of the economy. This causes bubbles and economic fragility.

There's now no difference between monetary policy and other government programs designed to prop up firms, industries, and other favored groups. The Fed is simply another government planning agency.

Price inflation is so difficult to predict, because there are so many moving parts: money supply, demand, money velocity, and supply of goods and services.