Category Archive: 6b.) Mises.org

Should the Fed Increase the Money Supply in Response to a Growing Economy?

Most commentators believe a growing economy requires a growing money stock because economic growth gives rise to a greater demand for money, which then must be accommodated. Failing to do so will lead to a decline in prices of goods and services which, in turn, destabilizes the economy and leads to a recession or, even worse, depression.

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Debunking Fossil Fuel Hysteria: An Interview with Alex Epstein

Jeff Deist: Alex Epstein is our special guest this week. He runs the Center for Industrial Progress, was formerly at the Ayn Rand Institute, and has a background in philosophy. He wrote a famous book called The Moral Case for Fossil Fuels, and followed that up with a new book called Fossil Future. Alex, let me say this book is incredible. Thank you for writing it! I know from the acknowledgements it was quite a difficult task.

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Weniger Schulden = Rezession? Der freie Markt löst alle Probleme? Flassbeck vs. Thorsten Polleit

Rekordschulden etwas schlechtes? In diesem Interview trifft ein Vertreter der österreichischen Schule auf einen Postkeynesianer. Diskutiert wird, ob Geld auf dem freien Markt entstanden ist, was die Bedeutung von Rekordschulden ist und ob es sich bei den Target-Salden um einen Vermögenstransfer handelt.

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Warum unser Fiatgeld uns in einen dystopischen Weltstaat führt – und wie wir mit besserem Geld …

Ein Vortrag, den Thorsten Polleit am 5. September 2020 in der Bibliothek des Konservatismus, Berlin, gehalten hat. Das Buch "Mit Geld zur Weltherrschaft.

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How to Think about Economic Theory

[Chapter 2 of Per Bylund's new book How to Think about the Economy: A Primer.] Like other sciences and fields of study, economics is a body of theory. Theory is a collection of explanations that allows us to understand something. Economic theory allows us to understand how an economy works.

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Seeing the Student Loan Crisis as a Form of Boom and Bust

In a market economy, prices are determined by supply and demand: how much of a quantity is being offered and how much value people place on that good relative to other goods. However, with great government power comes potential for great government irresponsibility: artificially lowering prices for some either through outright money printing or by taxing some to subsidize others.

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The Other Immigration Question: Should People from Wealthy Countries Migrate to Poorer Ones?

The immigration debate has polarized societies across the Western world. Objectors assert that the influx of migrants has corroded social relations, and defenders argue that immigrants release a dose of entrepreneurial dynamism. Debates will persist because it’s unlikely that people can be discouraged from migrating to rich countries in the West. Migrants will continuously flock to places like America and Canada, since they provide better...

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The Idea of Liberty Is Western

[This article is excerpted from chapter 21 of Money, Method, and the Market Process, a collection of essays selected and edited by Margit von Mises and with an introduction by Richard M. Ebeling.]

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The Fed Is Finally Seeing the Magnitude of the Mess It Created

When asked about price inflation in his Sunday interview with 60 Minutes, President Biden claimed that inflation "was up just an inch...hardly at all." Biden continued the dishonest tactic of focuses on month-to-month price inflation growth as a means of obscuring the 40-year highs in year-over-year inflation.

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What Economics Is

Economics is an exciting field. The economics of old sought to uncover how the world works. It showed, or even proved, that there is a natural order to it. There is structure to the apparent chaos. The economy has something of a life of its own: it has a nature.

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Does Capitalism Itself Create Economic Instability or Is Central Banking the Culprit?

Instability in financial markets has brought back the ideas of post-Keynesian school of economics (PK) economist Hyman Minsky. Minsky held that the capitalist economy inherently is unstable, culminating in severe economic crisis, accumulation of debt being the key mechanism pushing the economy toward a crisis.

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Central Bankers Are Gaslighting Us about the “Strong Dollar”

On February 8, the Japanese yen fell to a 24-year low against the dollar, dropping to 143 yen per dollar. Not much has changed since then with the yen hovering between 142 and 144 per dollar. In September of 2021, one only needed 109 yen to buy a dollar. 

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Why the Fed Usually Ignores its Mandate for “Stable Prices”

In recent years, Congress has attempted to add various new mandates to the Federal Reserve's mission. In 2020, Democrats introduced the "Federal Reserve Racial and Economic Equity Act."  Then, in 2021, pundits and politicians were telling us that it's the Fed's job to "combat climate change."

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Review: Free Market: The History of an Idea

Jacob Soll is a distinguished historian, and Free Market contains much of value, but the book cannot be considered a success, and indeed as it reaches the twentieth century, it becomes a disaster. Even in the parts of the book worth reading, Soll is in the iron grip of a central thesis, one that his historical approach by its nature makes impossible to prove.

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Socialism Is Not Groupthink, but Statethink: A Brief Comment on Jordan Peterson

According to Jordan Peterson, left-wing totalitarians are characterized by an ideology in which group identity is paramount. I will demonstrate that this is a misconception. Historically, socialists have fought against feudalism and capitalism in the name of emancipating the individual from any kind of group or class identity.

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Wages, Unemployment, and Inflation

Our economic system—the market economy or cap­italism—is a system of consumers' supremacy. The customer is sovereign; he is, says a popular slogan, "always right." Businessmen are under the neces­sity of turning out what the consumers ask for and they must sell their wares at prices which the con­sumers can afford and are prepared to pay.

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The Truth about American Inequality

Economist and Mises Institute Associated Scholar Robert Ekelund recently teamed up with former US Senator Phil Gramm and John Early to write The Myth of American Inequality: How Gernment Biases Policy Debate.  The book was released this month by Rowman and Littlefield Publishers. In it, the authors explore some of the many ways that the debate over inequality in the United States is based on bad research, bad data, and a variety of other...

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Per Bylund: The Austrian School Approach to Business versus the Business School Approach

Business is a form of applied economics. Its purpose is to make people’s lives better. Profit is the signal from society that business is doing a good job in the customer’s estimation.

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Molinari Explains the Difference between Monarchy and Popular Government

With the impending burial of the United Kingdom’s Queen Elizabeth II, republicans from London to Sydney have ramped up their efforts to end the British monarchy. The resulting war of words between monarchists and their opponents has highlighted the sheer diversity of opinions over the desirability of monarchy.

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Government Intervention into International Currency Exchange Rates: Japan as a Case Study

The recent hefty depreciation of the yen to a twenty-four-year low against the dollar has raised eyebrows due to the yen’s traditional safe haven role in times of turmoil, such as the war in Ukraine. The yen’s decline had already started when major central banks signaled a tightening of monetary policy to fight inflation while the Bank of Japan (BoJ) doubled down on its loose monetary policy and zero target for ten-year bond yields.

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