Financial MarketsMoney and Banking
Works Published inQuarterly Journal of Austrian EconomicsThe Free MarketSpeeches and PresentationsMises Daily Article
AwardsO.P. Alford III Prize in Political Economy
Dr. Thorsten Polleit, Chief Economist of Degussa and macro-economic advisor to the P&R REAL VALUE fund. He is Honorary Professor at the University of Bayreuth.
In the short term, a central bank can drive up stock prices by lowering the interest rate. In the longer term, it could sap the strength out of an economy.
By tinkering with interest rates, central banks tinker with the way human beings see the present and the future, and their value systems overall.
The FedFinancial MarketsMoney and Banks
The Fed is prepared to squeeze out what little is left of the free market forces in the debt market. The Fed wants full control so it can do "whatever it takes" to keep interest rates from rising above its very-low targets.
Money and BanksMoney and Banking
One of the easiest ways of asserting control over the private sector is to manage the money supply with a central bank. Naturally, Marx was rather fond of the idea.
The only way to end the booms and busts brought by inflationary credit is to eliminate the central bank's counterfeiting that constitutes and creates that inflation.