Murray Rothbard begins this outstanding book by calling attention to a paradox. The Federal Reserve System enjoys virtual immunity from congressional investigation. The few who propose to subject the Fed to even minimal scrutiny, such as Henry Gonzales of Texas, at once find a consensus arrayed against them (pp. 1ff.). They threaten the stability of the market, since – it is alleged – only the Fed’s independence blocks the onset of uncontrollable inflation.
Here lies the paradox. Inflation results from the infusion of new money into the economy, and it is the Fed that is responsible for its creation. “The culprit solely responsible for inflation, the Federal Reserve, is continually engaged in raising a hue-and-cry about ‘inflation’ for which virtually everyone else in society seems to be responsible” (p. 11). How did this odd situation come about? FULL ARTICLE