The word “nightmare” in the title to this article on inflation and the central bank’s response – a rise in interest rates – adversely affecting those who have taken loans to buy homes, cars etc, is noteworthy: “nightmare”.
Nothing less.
Yet, it proves a basic truth:
WHERE THE GOVERNMENT PLANS, THE PRIVATE PLANS OF THE CITIZENS DO NOT SUCCEED
“Monetary policy” – the jazzy knowledge of the central banker, backed by “macroeconomics” – is a kind of “planning”: a central “mastermind” in control of the supply of money and credit.
When we have sound money, which is hard money and its representatives, there will be no “monetary policy”.
Instead of inflation, prices will steadily fall, as output rises with productivity increases.
Then, the long term plans of individuals – to buy a house on installments, say – will have much greater chances of succeeding.
Nothing less.
Yet, it proves a basic truth:
WHERE THE GOVERNMENT PLANS, THE PRIVATE PLANS OF THE CITIZENS DO NOT SUCCEED
“Monetary policy” – the jazzy knowledge of the central banker, backed by “macroeconomics” – is a kind of “planning”: a central “mastermind” in control of the supply of money and credit.
When we have sound money, which is hard money and its representatives, there will be no “monetary policy”.
Instead of inflation, prices will steadily fall, as output rises with productivity increases.
Then, the long term plans of individuals – to buy a house on installments, say – will have much greater chances of succeeding.
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