Category Archive: 6b) Austrian Economics

The macroeconomic situation in Japan seems to be coming to a head. When the Bank of Japan, under its President Haruhiko Kuroda, announced on December 20, 2022, that it would raise its interest rate ceiling on ten-year Japanese government bonds from 0.25 percent to 0.50 percent, share prices in Tokyo plummeted and the Japanese yen appreciated sharply.

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There are surely other worlds than this—other thoughts than the thoughts of the multitude—other speculations than the speculations of the sophist. —Edgar Allan Poe, “The Assignation” Nothing brings out misleading or false narratives like the subject of money. Prices over the last twenty-five months have shot up, and this development is roundly called inflation. Why? Because prices have shot up. The criminals running the government even passed an...

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Some economists have suggested that inflation results when the money supply expands faster than the rate at which goods and services are produced. They correctly point out that this expansion of the money supply will generally lead to rising prices. But what most economists fail to mention is that inflation can exist even when prices are stable.

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According to popular thinking, the government’s definition of money is of a flexible nature. Sometimes it could be M1, and at other times it could be M2 or some other M money supply. M1 includes currency and demand deposits. M2 includes all of M1, plus savings deposits, time deposits, and money market funds.

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On January 10, the French government announced plans to raise the retirement age from 62 to 64. The change would mean that after 2027, workers in France would have to work 43 years to qualify for a government pension, instead of 42 years. French workers promptly took to the street in protest decrying even this very small reduction government welfare. 

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