Mises Wire

Economic Stats Won't Tell Us What Really Causes Recessions

Booms and BustsMoney and Banks

Blog12/31/2019

The mainstream National Bureau of Economic Research definition of recessions is of little value. Real saving, not consumer demand, is the real driver behind economic growth.

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Easy-Money Policies Don't Solve the Problem of Idle Resources

Blog12/07/2019

Loose monetary policy can get people to use idle resources. But this new economic activity will likely be in the service of bubble industries that don't create real wealth. Moreover, these bubbles create many idle resources of their own when the bust comes.

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Exports: Currency Devaluation Won't Grow the Economy

Money and Banking

Blog12/02/2019

When governments devalue the currency to push more exports, the country is getting rich in terms of foreign currency, but it is getting poor in terms of real wealth.

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Economic Growth Does Not Cause Price Inflation

Blog10/07/2019

It is not true that a growing economy will lead to price inflation. A growing economy is an increasingly productive economy and leads to dollars chasing a larger number of goods and services — causing deflation.

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Economic Models vs. The Real World

Money and BanksMoney and BankingPhilosophy and Methodology

Blog05/04/2019

Economic theory must have only one purpose — to explain economic activity. However, statistical methods are of no help in this regard.

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Economic Growth Isn't the Cause of Inflation

The FedMoney and Banking

Blog06/30/2018

A fall in prices is the manifestation of real wealth expansion. General price inflation, on the other hand, results from monetary pumping. 

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Economists Are the New Astrologers

Calculation and Knowledge

Blog08/28/2017
Modern mathematical models in economics are about as useful as star mapping for predicting the future.
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Employment Is Not the Key to Economic Growth

Labor and WagesBusiness Cycles

Blog08/11/2017
Fixing unemployment without addressing the issue of real savings cannot increase the pace of economic growth.
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