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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The purpose of this essay is not to appeal to the reason of our monetary authorities.

Deflation and Liberty – Jörg Guido Hülsmann – Google Books

In this case, inflation has no effect on unemployment. Sriram Venugopal rated it liked it May 14, Viner emphasizes that the pre—World War I gold standard was not fundamentally different from the interwar gold-exchange standard.

False thinking on this point has given our governments undue leeway, of which they have made ample and bad use. Everybody from the miners to the owners of the mines, to the minters, and up to the customers who buy liberrty minted coins, all of them benefit from the production of money.

Deflation and Liberty | Mises Institute

All plans to reduce unemployment through inflation therefore boil down to fooling the workers—a childish strategy, to say the least. The stock-market boom has already ended in a resounding crash.

It not only brings the inflated monetary system back to rock bottom, it brings the entire society back in touch with the real world, because it destroys the economic basis of the social engineers, spin doctors, and brain washers. In all known cases, it was only under extreme duress— when the purchasing power of their paper money holdings dwindled within hours, so that indirect exchange became impracticable—that the market participants finally ignored the laws and started using moneys other than the legal tender.


For the same reason, inflation is no remedy for the problem of sticky wages —that is, for the problem of coercive labor unions.

He goes further than any previous writer in arguing that no measures of any kind should be undertaken hulsjann cure the bust through money creation, even under conditions of falling prices and falling money stock. Psychology, praxeology, and ethics Sep 15, Sep 14, Bitcoin as medium of exchange now and unit of account later: The printing press of the Federal Reserve has fueled a housing boom just as it has fueled the s boom of the stock market.

The Fed inflated the economy after deflation had destroyed a great number of banks, reducing their total number to some 15,—roughly the level prevailing in The point is that other people will run the firms and own the houses—people who at the time the deflation set in were out of debt and had cash in hand to buy firms and real estate. Neither policy benefits the nation as a whole, but merely a part of the nation at the expense of other groups.

As we have stated above, Rothbard’s views on deflation seem to be deficient only when it comes to the practical issue of monetary reform. Libertarian Press,pp. In light of the principle discovered by the classical economists, piberty can say that deflation is certainly not what it is commonly alleged to be: 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.

Deflation and Liberty

The late Lord Keynes and his coauthors—among them several leaders of the London banking industry, and of the British cooperative and labor-union movements—were of course convinced that their country could not do without them. Many Austrian economists believe the description fits the Hjlsmann Depression and several other economic crises of the past.

False thinking on this point has given our governments undue leeway, of which they have made ample and bad use.


It is also questionable whether our monetary authorities can legitimately use their gold reserves to salvage their paper money. Magic, fraud, or ‘sufficiently advanced technology’? Deflation creates a great number of losers, and many of these losers are perfectly innocent people who have just libertty been wise enough to anticipate the event.

Theoretical considerations and historical experience all point to the same answer: There is absolutely no hope that the Federal Reserve or any other fiat money producer of the world will change their policies any time soon.

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But there is another set of consequences that the government does not like to talk about because they demonstrate the futility of the intervention. And this means in libetry that in a free society the production of money is competitive. See also Edward Lincoln, Arthritic Japan: But in other countries, totalitarianism has not sprung into life full-fledged like Venus from the waves.

The lower nominal selling receipts after the run do not suffice to pay back the debts contracted at the higher nominal price level of the past. Tangibility, scarcity, and a “hard-money” checklist Mar 19, Mar 15, Individualism, collectivism, “mere” birds, and how to understand ice hockey Mar 15, Mar 6, Bitcoin and social-theory research highlights: Open Preview See a Problem? But it does not affect the aggregate wealth of society. First, there can be a liquidity crisis of the fractional-reserve banking system that ends up in a bank run, that is, in a sharp decline of the demand for money substitutes.

The overall result of these laws was to facilitate the introduction of inflationary paper currencies and to drive specie out of circulation. US public debt is currently December hulsmahn some 6.