If organizations like the Federal Reserve and governments were forced to compete in a real economy, they would have been forced to declare bankruptcy, reorganize, and split up into smaller pieces long ago.
Prices and purchasing power are determined by how individual consumers value goods and services. The "velocity of money" won't help us understand prices or the money supply.
In this crisis the money supply has already increased far more than during the last crisis. But it's hard to say when this will produce inflation because we're still in the midst of a demand shock and a collapse in oil prices.
Although politicians lecture private companies for raising prices, it is governments that have for decades raised the prices of goods and services by limiting supply and raising costs.
It isn’t a good argument against Austrian economics that someone might come up with a science that made better predictions. You have to show us the science, so that it can be compared with praxeology. Suffice it to say that this hasn’t been done.
Far from being a sign of alleged capitalist brutality, the spread of international trade and market freedom is a sign of greater global cooperation and solidarity.
No matter what levers are pulled by the fiscal and monetary authorities, stones will not be turned into bread.
In a world of scarcity, there are no solutions, only tradeoffs.
At some point in early April, the official narrative switched form "don't let hospitals get overwhelmed" to "you're locked down for years until there's a vaccine."
Governments can increase GDP numbers simply by spending more, and this can reduce debt as a percentage of GDP. But what if we calculate GDP using only private spending?
