It is often held as conventional wisdom that expanding the money supply means causing inflation. Those claiming this say that “printing” more money will automatically increase the prices of goods and services in an economy. In the view of many, the expansion of the money supply somehow bypasses the forces of supply and demand and…
Section 1: Introduction Section 2: Milton Friedman’s View of the Cause of Inflation Section 3: John Harvey’s Response to Friedman and the Creation of Money Section 4: Additional Examples of Inflation Not Caused by Money Creation Section 5: My Response to Harvey’s Assumptions of Fractional Reserve Banking Section 6: A Bit of Marxist Perspective on…
The primary reason that an-caps choose the gold standard is the belief they have that the ability of governments to print more money causes inflation. It is this ability to inflate currency on demand that causes inflation. This according to them cannot happen if we have a gold standard. Of course this is not what…
Recently Venezuela devalued its currency which has caused a great deal discussion among the people and the media. As to be expected the right wing media and the Western media has claimed that this is some sort of desperation move by the government to prevent a massive economic collapse. Right wing media and generally the…
By blogger Lord Keynes (who is cool) It was once claimed by Murray Rothbard that deflation was the natural state of the economy: or, that is to say, what Rothbard imagined as the “natural state” in his anarcho-capitalist fantasy world. Needless to say, anarcho-capitalism has never existed in the real world, so we really have…
