According to the Austrian business cycle theory, the boom-bust cycle emerges in response to a deviation in the market interest rate from the natural interest rate, or the equilibrium interest rate. As a rule, it is held, the tampering with market interest rates by the central bank sets the boom-bust cycle in motion. Given this viewpoint, one might
While an increase in the supply of gold money would lead to higher consumer prices, such increases in the gold supply do not lead to boom-bust cycles. Original Article: “ Can Increases in the Supply of Gold Lead to Boom-Bust Cycles?” This Audio Mises Wire is generously sponsored by Christopher
Money printing—even at a constant rate—is going to generate the same result as any other money printing. The reason lies in the fact that money creation transfers wealth from productive to unproductive enterprises. This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros. Original Article: “ Printing Money
In the midst of the most serious financial crisis since the Great Depression, some economists are currently trying to come up with answers as to how to stabilize the financial system. Most experts are of the view that greater control of financial markets is the answer. The late professor Milton Friedman would have been dismayed by such ideas. He
In his interview with the CNBC on November 9, 2010, a highly regarded Wall Street economist, Nouriel Roubini, the cofounder and chairman of Roubini Global Economics, said that a gold standard is unlikely to stabilize the financial system. On the contrary, holds Roubini, such a standard can only make things much worse. For instance, argues Roubini,
According to Milton Friedman, the key cause of the business cycles is the fluctuations in the growth rate of money supply. Friedman held that what is required for the elimination of these cycles is for central bank policymakers to aim at a fixed growth rate of money supply: My choice at the moment would be a legislated rule instructing the
Según la teoría austriaca del ciclo económico, el ciclo de auge-caída surge como respuesta a una desviación del tipo de interés de mercado con respecto al tipo de interés natural o de equilibrio. Por regla general, se sostiene que la manipulación de los tipos de interés de mercado por parte del banco central pone en marcha el ciclo de auge-caída.
Según Milton Friedman, la causa principal de los ciclos económicos son las fluctuaciones en la tasa de crecimiento de la oferta monetaria. Friedman sostuvo que lo que se requiere para la eliminación de estos ciclos es que los responsables de las políticas del banco central apunten a una tasa de crecimiento fija de la oferta monetaria: Mi elección
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The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
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