How Fractional Reserve Lending Makes Money Disappear

How Fractional Reserve Lending Makes Money Disappear

According to the popular way of thinking, it is held that banks are responsible for the expansion of lending also known as credit, and given that economic prosperity is associated with an increase in credit, they are seen as crucial to the economic well-being. But are...
How Keynesian Ideas Weaken Economic Fundamentals

How Keynesian Ideas Weaken Economic Fundamentals

Whenever there are signs that the economy is likely to fall into an economic slump most experts advise that the central bank and the government should embark on loose monetary and fiscal policies to counter the possible economic recession. In this sense, most experts...
Money Printing Can’t Replace Saving

Money Printing Can’t Replace Saving

There are some signs that the pace of US economic activity is starting to slow down. For instance, the yearly growth rate of industrial production, which closed at 5.4% in September 2018, fell to 1.3% by June this year (see chart). In addition, the annual growth rate...