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Source link: http://archive.mises.org/12950/the-monetary-or-circulation-credit-theory-of-the-trade-cycle/

The Monetary or Circulation-Credit Theory of the Trade Cycle

June 11, 2010 by

The British Currency School did not criticize the multifarious projects to lower or abolish interest by means of a banking reform. They tacitly ratified the naïve presumption of money’s neutrality, and many decades passed before the spell was broken. FULL ARTICLE by Ludwig von Mises

{ 1 comment }

Dick Fox June 13, 2010 at 9:05 am

There are few economists today who would suggest the total abolition of interest, but their actions attempting to keep interest rates at near zero speak louder than their words. What they don’t understand is that the time preference of interest is a real phonomenon and if interest rates are held below the desired future return there will be no loans. No matter how much money is thrown at the problem traders know that you cannot make up losses on volume if you are losing on each transaction.

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