The Wrong Way and the Right Way To Fix the Fed - LewRockwell

The Wrong Way and the Right Way To Fix the Fed - LewRockwell: Monetary Policy as Inflationism Today all governments and central banks operate under the ideology of inflationism. The underlying principle of inflationism is that the quantity and purchasing power of money determined by the free market leads to deflation, recession, and unemployment in the economy. The inflationist ideology is therefore embedded in the very concept of monetary policy, which can be defined as an increase in the supply of money aimed at lowering the purchasing power below the level determined by market forces. In other words, the purpose of monetary policy is perpetual inflation of money and prices. For the past … Continue reading →