Financial MarketsMoney and Banking
Works Published inQuarterly Journal of Austrian EconomicsThe Free MarketSpeeches and PresentationsMises Daily Article
AwardsO.P. Alford III Prize in Political Economy
Dr. Thorsten Polleit, Chief Economist of Degussa and macro-economic advisor to the P&R REAL VALUE fund. He is Honorary Professor at the University of Bayreuth.
Money and BanksMoney and Banking
One of the easiest ways of asserting control over the private sector is to manage the money supply with a central bank. Naturally, Marx was rather fond of the idea.
The only way to end the booms and busts brought by inflationary credit is to eliminate the central bank's counterfeiting that constitutes and creates that inflation.
If the US administration truly wishes to "To Make America Great Again," there is no way around addressing the Fed.
In its blind search for the "correct" interest-rate policy, the Fed can't succeed in extending the boom indefinitely.
Under an inflationary monetary scheme, big financial-sector players who get the new money first benefit the most. Ordinary households down the line then bear the brunt of price inflation.