JOIN OR RENEW TODAY
Because banks make unbacked "loans," they create new money that later disappears when repaid. If these loans are not renewed, economic depression sets in.
PraxeologySubjectivismValue and Exchange
A given goal dictates the specific means that an individual will choose for the attainment of that end. People make choices that they think will help them achieve an end.
Other Schools of ThoughtProduction TheoryValue and Exchange
There is productive consumption and there is non-productive consumption. In the Keynesian mind, it's not necessary to produce anything, so long as people spend and consume endlessly, even to the point of destroying real wealth.
Booms and BustsMoney and Banks
In order to remove the threat of secular stagnation what is required is to shrink government outlays and to close all the loopholes for the creation of money out of thin air.
Money and BanksMoney and Banking
Not only does fractional-reserve banking gives rise to monetary inflation it is also responsible for monetary deflation. Money created out of "thin air" can disappear as rapidly as it was created.
Real GDP does not measure the real strength of an economy, but reflects monetary turnover. Thus, the more money is pumped, the stronger the economy appears to be.
SubjectivismValue and Exchange
Prices are set by how much people value goods and services. And people value things based on what they think will improve their life and well-being.
Joseph Salerno discusses the Hoppean method of addressing economic controversies.