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There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved.
Ludwig von Mises
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Tag Archives: Austrian school
What has the MPC got to hide?
News to light the fires of the paranoid and conspiracy theorists out there: The Bank of England’s Monetary Policy Committee (MPC), the group which decides on interest rates each month, keeps no minutes of their meetings. We’ve argued on this … Continue reading
Posted in Uncategorized
Tagged Austrian school, Bank of England, central bank, economics, Federal Reserve, keynesian, mpc
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The illusion of stock market prosperity
The ups and downs of the stock market is reported daily, hourly – continuously on some news channels. Stock markets are seen as indicators of the overall economy. A rising stock market means prosperity, and a falling stock market spells … Continue reading
Posted in Uncategorized
Tagged Austrian school, bubble, cpi, djia, economics, Federal Reserve System, ftse, stock market, venezuela
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Forward guidance
One of the notably sinister traits of a central bank is the act of collaboration (read, collusion) between countries: they can’t exist for long without it. It is therefore not surprising that when Ben Bernanke issued a statement linking future monetary policy … Continue reading
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Tagged Austrian school, Bank of England, central banks, economics, fed, inflation
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The subtle Cantillon effects of inflation
The biggest problem with increases in the money supply is not that it causes a rises in prices – that monetary inflation can cause price inflation – for this is what we would expect to happen in most cases. Rather, … Continue reading
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Tagged Austrian school, Bank of England, cantillon, central banks, economics, fed, inflation, QE
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The new man at the helm
At the start of July, Mark Carney became the new Governor of the Bank of England. He appears to have taken his job at a time when there is greater optimism regarding the state of the UK economy, which has … Continue reading
Quote of the Day
That we are witnessing strange and dangerous deformations of the capitalist system, if we can still even call it capitalist, and that new bubbles are being blown everywhere, is not only evident by the increasingly grotesque dichotomy between a woefully … Continue reading
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Tagged Austrian school, cheap money, ECB, economics, Federal Reserve, inflation, monetary policy
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Dangerous experimentation
“Since we decided a few weeks ago to adopt the leaf as legal tender, we have, of course, all become immensely rich.” The Restaurant At The End of The Universe, Douglas Adams Post World War II, there was a system … Continue reading
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Tagged Austrian school, bretton woods, detlev schlichter, Douglas Adams, economics, fiat currency, richard nixon
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Real interest rates already are negative
Today it was announced that the Deputy Governor of the Bank of England was considering lowering the base rate further still, beyond the current 0.5% into negative terrority. Quite how this is supposed to solve our economic problems isn’t clear. … Continue reading
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Tagged Austrian school, Bank of England, central bank, interest rates, negative rates, Paul Tucker
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More on interest rates
On similar themes to my recent post on interest rates, Detlev Schlicter has written more on the topic. He explains that interest rates are key to co-ordinating consumption and investment: One of the important challenges of coordination for any economy … Continue reading
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Tagged Austrian school, central banks, coordination, detlev schlicter, interest rates, time preference
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