Monetary Policy

While the Fed continues its “two percent” charade, the central bank has been inflating the US economy into ruin. The latest Fed capers will not end well.

While it wouldn’t solve everything, a gold audit would be a step towards sound money.

Dr. Hülsmann offers his concluding thoughts on his debate with Philipp Bagus regarding the monetary consequences of closing the central bank of Argentina. 

Politicians in both parties are promising to address the affordability crisis. But neither is focusing on, or even discussing, the true causes. Here’s what they are and how to fix them.

The “greedflation” commentators are at it again, claiming that corporate profits are driving inflation. That is a logical impossibility.

The following is an article originally published on October 20th, 2025, at Ludwig von Mises Institut Deutschland. Its publication sparked a public debate on the topic between Dr. Bagus and Dr. Jörg Guido Hülsmann. 

After central bank expansionary efforts have unleashed inflation, officials then seek to contract the money supply in an attempt to undo the inflationary damage. No contractionary policy, however, can fix the problems caused by monetary manipulation.

Interest rates should be determined by the market, according to its needs, to operate efficiently and effectively distribute society’s financial resources.

Milton Friedman and the Monetarists believed that fluctuations in the money supply caused the boom-and-bust business cycles. Their solution—keeping money growth slow and steady—would still lead to business cycles.

According to mainstream economists, inflation aids economic growth while deflation impairs growth. Austrian economists, however, point out that in much of US history, economic growth was accompanied by deflation.