Money and BanksMoney and Banking
Even if the Fed were to know the level of the neutral rate it could not achieve economic stability.
Peshut concludes that claims that the corporate debt bubble is about to pop are premature and the more likely scenario is that the bubble bursts in 2021 or 2022.
Recessions emerge when the central bank reverses its loose monetary stance. But the seeds of recession were sown earlier by private lending practices that grew out of central-bank money creation.
Business CyclesCapital and Interest TheoryPrivate Property
Increases in the money supply need not always be followed by general increases in prices, as prices are determined by both real and monetary factors.
The idea that money must grow in order to sustain economic growth gives the impression that money somehow sustains economic activity. But this has never been true.
The prohibitionist impulse is widespread among politicians, whether it involves alcohol, drugs, sugar or meat.
As the foundation of the economy weakens, bank lending weakens also. And then money begins to disappear from the banking system.