Profiles

The evolution of global trade over the last decades has thus been influenced to a significant and yet unrecognized extent by the expansionist monetary policies of governments around the world.

Government injection of funds into trade finance prevents interest rates to rise, deepening malinvestments and precluding the readjustment of international trade after a crisis.

A important factor in wealth redistribution has been the increased participation of both financial and non-financial firms in financial markets.

Mises’s insight into the importance of Cantillon effects can be further extended to explain not only income and wealth inequalities among individuals but also some rather curious developments in global industrial organization over the last few decades.

What the international trade and monetary system needs in order to grow healthy are free markets, sound money, and entrepreneurs to maintain, accumulate, and employ capital for best satisfaction of consumers around the world.