How Central Banks and Lockdowns Are Making the Crisis Worse
After 2018, the US economy was already headed toward a recession. But bailouts and lockdowns have made things even worse.
After 2018, the US economy was already headed toward a recession. But bailouts and lockdowns have made things even worse.
The EU has now become essentially a makeshift, lawless regime designed to prop up bankrupt states. So much so, in fact, that even the German supreme court has become alarmed.
Prices of consumer goods have grown rather slowly in spite of sizable money supply growth. Why is there a gap?
In this crisis the money supply has already increased far more than during the last crisis. But it's hard to say when this will produce inflation because we're still in the midst of a demand shock and a collapse in oil prices.
Prices of consumer goods have grown rather slowly in spite of sizable money supply growth. Why is there a gap?
In this crisis the money supply has already increased far more than during the last crisis. But it's hard to say when this will produce inflation because we're still in the midst of a demand shock and a collapse in oil prices.
More money creation doesn't necessarily mean higher consumer prices. But, if production is falling while consumers use their stimulus checks to buy food and clothing, we could see noticeable price inflation.
Join the Mises Institute and economist Daniel Lacalle for a special live seminar on the COVID-19 crisis and what it means for your economic future.
More money creation doesn't necessarily mean higher consumer prices. But, if production is falling while consumers use their stimulus checks to buy food and clothing, we could see noticeable price inflation.
Although the money supply has greatly increased, accompanying growth in production has it possible to keep the current system of immense debt increase going for a long time.