Deflation and Liberty [Jorg Guido Hulsmann] on *FREE* shipping on qualifying offers. This monograph addresses a critically important issue: the. Deflation and Liberty has 74 ratings and 4 reviews. Marcus said: This is a pretty good defense against anti-deflationary (inflationary) policies. I was h. Deflation is not inherently bad. It creates winners and losers. It also puts a temporary break on the concentration of power in the hands of government and in.
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From the standpoint of the commonly shared interests of all members of society, the quantity of money is irrelevant. Be the first to ask a question about Deflation and Liberty. Among the many causes that coincided in bringing about this state of affairs is a certain lack of resistance on the part of professional economists. Some present-day libertarians harbor a romantic picture of these days of the classical gold standard. It would not be uncharitable to characterize inflation as a large-scale rip-off, in favor of the politically well-connected few, and to the detriment of the politically destitute masses.
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Ryan rated it liked it Aug 04, This in turn jeopardizes the positions of many creditors, who when they do not get their money back cannot pay back their creditors.
The point is that such increases or decreases should not be mistaken to benefit society as a whole. The essay covers deflatioj surprisingly vast theoretical territory in a short space, including the nature of money and interest, the boom and bust, the impossibility of stabilization measures, and the economic tends of the recession.
In both cases, the production of money is excessive because it is no longer constrained by the informed and voluntary association of the buying public. Country Profile Japan London: If we tie this up with our comparative analysis of free and compulsory production of money and money substitutes, we come to the conclusion that deflation is not a mere redistribution game that benefits some individuals and groups at the expense of other individuals and groups.
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Things are completely different once we turn to money production in interventionist regimes, which have prevailed in the West for the better part of the past years. Quite to the contrary, it can even have negative effects, namely, if the workers over estimate the inflation-induced reduction of their real wages and thus ask for wage-rate increases that bring about even more unemployment.
Geir rated it really liked it Apr 19, The government should permit it to happen as a path to economic recovery and even as a tool to reform. Want to Read saving….
Deflation and Liberty – Jörg Guido Hülsmann – Google Books
Research and writing portal for the work of Konrad S. I found that while it didn’t really address that situation specifically, it did have quite a bit to think about.
But only Sennholz did not flinch from praising deflation and depression when it came to abolishing fiat money and putting a sound money system in its place.
Neither does our contention necessarily apply to credit anv, such as the paper pound during the Napoleonic Wars. This is a pretty good defense against anti-deflationary inflationary policies.
Similarly, there is no reason why inflation should ever reduce rather than increase unemployment.
And the federal government can constantly expand its activities and finance them through additional debt even if there is no prospect at all that these debts will ever be paid back out of tax revenues. Cantor, “Hyperinflation and Hyperreality: Imagine if all prices were to drop tomorrow by 50 percent.
Andrew Allison rated it liked it Jun 27, In a free society the production of money is constrained within fairly narrow limits, limits that are determined by the willingness of other members of society to cooperate with our money producer rather nad with someone else.
Deflation and Liberty | Mises Institute
It thus destroys the economic basis of the false elites and obliges them to become true elites rather quickly, or abdicate and make way for new entrepreneurs and other social leaders. Goodreads helps you keep track of books you want to read. The share of banking and financial intermediation in overall economic activity will be reduced, and financial decision making will be even more conservative and decentralized than it is anyway.
November Nov 30, Speaking with one-year-olds and beyond: Since we are not concerned here with questions delation labor economics, we can directly turn to the connection between employment and monetary policy.
Yet this silent accord stands on shaky ground. Ludwig von Mises Institute,pp. Consider just the most important case of private debt, namely, debts incurred for building or purchasing a home. But it does not affect the aggregate wealth of society.
Aristotle said that money was no part of the wealth of a nation because it was simply a medium of exchange in inter-regional trade, and the authority of his opinion thoroughly marked medieval thought on money.
Firms and individuals will, at the margin, turn to financing whatever purchases they make through personal savings.
Deflation and Liberty
In contrast to the present author, however, Lawrence White seems to believe that historical fractional-reserve banking has rarely if ever been fraudulent. But other firms are harmed libetty the very same fact because they can no longer pay the higher prices for wages and defkation that the privileged firm can now pay. It could reduce unemployment and stimulate production and economic growth. Deflation creates a great number of losers, and many of these losers are perfectly innocent people who have just not been wise enough to anticipate the event.
But they lack support out of ignorance and fear. I will add some minimal commentary in brackets with emphasis in bold. Harvard University Press, Moreover, loberty money has completely transformed the financial structure of the western economies.