Mises Wire

How Central Banks Enable the Money-Creation Process

Money and BanksMoney and Banking

While it is true that private banks initiate the money-creation process, it is central banks that make the the whole process possible.
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High Prices Don't Cause Economic Bubbles

Money and BanksMoney and Banking

Bubbles aren't created by price increases. They're created by central-bank induced misallocation of resources.
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How Interest Rates Affect Time Preference — and Vice Versa

Money and BanksMoney and Banking


A general increase in price inflation, resulting from increasing money supply and a fall in real wealth, will lead to a general rise in interest rates.

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Humans Are Hard-Wired to Value Some People over Others

World HistoryPhilosophy and MethodologyPolitical Theory

03/09/2016Mises Wire
Human beings like to form cooperative groups to achieve various ends. Research has shown, however, that there are limits to the size and nature of these groups, and this is why the state so often turns to violence.
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How to Reverse the Innovation Slowdown

Global EconomyWorld HistoryPhilosophy and MethodologyPolitical Theory

02/15/2016Mises Wire
Compared to the golden age of innovation, now maligned as the "Gilded Age," technological innovation has slowed considerably. But, it doesn't have to be this way, if we can only get the state out of the way.
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How Money Disappears in a Fractional-Reserve Money System

The FedMoney and BanksMoney and Banking

12/02/2015Mises Wire
Fractional-reserve banking systems create money out of thin air, and this causes malinvestments into less valuable and less productive activities. Eventually, banks realize there's trouble ahead, so they cut back on loans which leads to deflation and crisis.
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