The Fed’s monetary policy, except for very brief periods in 1929 and 1936–1937, was consistently and unremittingly inflationist in the 1920s and 1930s.
Car companies are building in Mexico rather than the United States, largely because it has freer trade than the United States does with the rest of the world.
Mises declared in 1951: “No boom is possible without credit expansion... the boom which causes the following depression could not occur if the banks did not expand credit."
In April, year-over-year growth in the money supply was at 1.99 percent. That was up slightly from March's growth rate of 1.92 percent, but was well down from April 2018's rate of 4.32 percent.
Government injection of funds into trade finance prevents interest rates to rise, deepening malinvestments and precluding the readjustment of international trade after a crisis.
Mises’s insight into the importance of Cantillon effects can be further extended to explain not only income and wealth inequalities among individuals but also some rather curious developments in global industrial organization over the last few decades.
