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Tag Archives: money supply
Pool of Funding the Heart of Economic Growth
POOL OF FUNDING THE HEART OF ECONOMIC GROWTH Most experts are of the view that massive monetary pumping by the US central bank, the Fed, during the 2008 financial crisis saved the US and the World from another Great Depression. If increases in money supply is an important catalyst for economic growth then the World […]
Deflation Must Be Embraced
DEFLATION MUST BE EMBRACED There are two problems with understanding deflation: it is ill defined, and it has a bad name. This article puts deflation into its proper context. This is an important topic for advocates of gold as money, who will be aware that sound money, in theory, leads to lower prices over time […]
How Uncle Sam Inflates Away Your Life
How Uncle Sam Inflates Away Your Life “Inflation is always and everywhere a monetary phenomenon,” once remarked economist and Nobel Prize recipient Milton Friedman. He likely meant that inflation is the more rapid increase in the supply of money relative to the output of goods and services which money is traded for. As more and […]
ECB v the Federal Reserve – Different Animals Altogether
ECB v the Federal Reserve – Different Animals Altogether QUESTION: Do you you really think Trump would let the Central Banks Default? He said we would write off PoteRicos debt maybe he plans to write everything off can he do that? If this really did happen wouldn’t the dollar be worthless? S ANSWER: It seems […]
Why US Price Inflation Remains Relatively Subdued?
WHY US PRICE INFLATION REMAINS RELATIVELY SUBDUED? The yearly growth rate of the US consumer price index stood at 1.9% in August against 1.7% in July, while the growth rate of the price index less food and energy stood at 1.7% in August against a similar figure in July and 2.3% in August last year. […]
Saving and Money–What is the Relationship?
SAVING AND MONEY – WHAT IS THE RELATIONSHIP? Conventional wisdom says that savings is the amount of money left after monetary income was used for consumer outlays, implying that saving is synonymous with money. Hence, for a given consumer outlays an increase in money income implies more saving and thus more funding for investment. This […]
Four Reasons Central Banks are Wrong to Fight Deflation
Four Reasons Central Banks are Wrong to Fight Deflation The word “deflation” can be defined in various ways. According to the most widely accepted definition today, deflation is a sustained decrease of the price level. Older authors have often used the expression “deflation” to denote a decreasing money supply, and some contemporary authors use it […]
Moving Closer to the Precipice
Moving Closer to the Precipice Money Supply and Credit Growth Continue to Falter The decline in the growth rate of the broad US money supply measure TMS-2 that started last November continues, but the momentum of the decline has slowed last month (TMS = “true money supply”). The data were recently updated to the end […]
Venezuela’s Money Supply Soars By A Record 200%
Venezuela’s Money Supply Soars By A Record 200% Two weeks ago, Reuters reported that due to “unexplained” reasons, the Venezuela central bank had stopped publishing its M2, or money supply, data. The M2 money supply was up by nearly 180% in mid-February from a year earlier, according to the central bank before it halted the […]
Venezuela Stops Publishing Money Supply Data For Obvious Reasons
Venezuela Stops Publishing Money Supply Data For Obvious Reasons More than a year after hyperinflating banana republic Venezuela stopped reporting official inflation data, Venezuela has stopped publishing money supply data, depriving the general public of the last, and best, available tool to ascertain soaring inflation in what has become the world’s worst-performing economy. Then again, […]
The Coming Of Depression Economics
The Coming Of Depression Economics Like it or not, this is where we have been all along and a great many people are just now catching up. No matter what Janet Yellen says about the economy, she is talking out the side of her mouth. Internally, the recovery is gone, and it is never coming […]
US True Money Supply Growth Jumps, Part 1: A Shift in Liabilities
US True Money Supply Growth Jumps, Part 1: A Shift in Liabilities A Very Odd Growth Spurt in the True Money Supply The growth rates of various “Austrian” measures of the US money supply (such as TMS-2 and money AMS) have accelerated significantly in recent months. That is quite surprising, as the Fed hasn’t been […]
There is no such thing as a negative interest rate
There is no such thing as a negative interest rate We Austrian economists are used to having terms corrupted, misused and redefined by statists and others who love and advocate strong central control of money and power. The term “inflation” is a prime example. We Austrians refer to “inflation” as creating new fiat money–as in […]
