Money Supply Increase Does NOT Cause Boom/Bust Cycle

3 years ago
37

In this episode, we look at the root cause of the boom/bust cycle. In general, Austrian Business Cycle Theory holds that an increase in money causes the market interest rate to deviate from the natural rate, which sets in motion the boom/bust cycle. However, this would mean that gold mining could trigger a boom/bust as well. As you may imagine, we have to dig a little deeper than that.

Frank Shostak's Article: https://mises.org/wire/sound-money-versus-fiat-money-effects-boom-bust-cycle

Video I mentioned at 1:37 - https://youtu.be/jaOb_LgQ2jA

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