Deflation and Liberty [Jorg Guido Hulsmann] on *FREE* shipping on qualifying offers. This monograph addresses a critically important issue: the. Deflation and Liberty has 74 ratings and 4 reviews. Marcus said: This is a pretty good defense against anti-deflationary (inflationary) policies. I was h. Deflation is not inherently bad. It creates winners and losers. It also puts a temporary break on the concentration of power in the hands of government and in.

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Goodreads helps you keep track of books you want to read. Thanks for telling us about the problem. McGraw-Hill, ; Robert R. If we tie this up with our comparative analysis of free and compulsory production of money and money substitutes, we come to the conclusion that deflation is not a mere redistribution game that benefits some individuals and groups at the expense of other individuals and groups. And in a free society, the obvious answer is, all producers of money have the right to produce more money, and all owners of money have the right to use their property as they see fit.

Liberty Fund,pp.

The main advantage of the successful newcomer is that he has high revenues. Mises and Rothbard adopted the point of view espoused already by Jean-Baptiste Say, who depicted deflation as a harmful practice of restoring monetary sanity after a period of extended inflation. But present-day corporate and income-tax rates effectively prevent him deflatiom accumulating capital quickly enough to sustain the competition of the establishment.

It abolishes the advantage that inflation-based debt finance enjoys, at the margin, over savings-based equity finance. The libraries of our universities contain hundreds of books splitting hairs about unemployment, business cycles, and so on. Some of them point out that there is not yet any deflation, and that therefore there is no need to intensify the use of the printing press.

It thus has become the technical foundation for the adn menace of our day. This excessive production of money and money titles is inflation by the Rothbardian definition, which we have adapted in the present study to the case hulsmsnn paper money.


Everybody from the miners to the owners of the mines, to the minters, and up to the customers who buy the minted coins, all of them benefit from the production of money. However, I had understood the shorter work to ajd been a mere precursor to The Ethics of Money Production.

A short Bitcoin commentary on “Deflation and Liberty” — Konrad S. Graf

We have seen that deflation is not inherently bad, and that it is therefore far from being obvious that a wise monetary policy should seek to prevent it, or dampen its effects, at any price. In other words, whatever benefits might result from inflation are largely the accidental result of inflation hitting a particularly favorable set of circumstances, and we have no reason to assume that these accidental benefits are more likely to occur than accidental harm—quite to the contrary!

Deflation creates a great number of losers, and many of these losers are perfectly innocent people who have just not been wise enough to anticipate the event. After the deflation has cleaned up the economic landscape, fractional-reserve banking and other forms of financial intermediation will play a less significant role in the economy.

Its growth rate is fundamentally knowable and predictable by all market participants, and presumably less variable than even the total market supply of a given precious metal in any given year. It’s hard in such a short book to counter the thousands of pages of Keynesian economics that encourage inflation, but for what it is, Deflation and Liberty does a pretty good job.

Large strata of the population paid and were paid in coins made out of precious metals, especially out of gold and silver.

Similarly, there is no reason deflafion inflation should ever reduce rather than increase unemployment. It stops inflation and destroys the institutions that produce inflation. Inflation in the form of fractional-reserve banking and fiat money is ultimately a self-defeating practice. But they lack support out of ignorance and fear. We are told by virtually all the experts on money and finance—the central bankers and most university professors—that the liberth hits us despite the best efforts of the Fed; that money, banking, and financial markets hulsmajn not meant to be free, because they end up in disarray despite the massive presence of the government as a financial agent, as a regulator, and as money producer; that our monetary system provides us with great benefits that we would be foolish not to preserve.


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Schumpeter, Theorie der wirtschaftlichen Entwicklung Leipzig: Why hold any substantial cash balances if bulsmann central bank stands ready to lend you any amount that might be needed, at a moment’s notice? In short, uulsmann monetary constitutions of the 19th century were not perfect, and neither would the monetary thought of the classical economists satisfy us today. There are no discussion topics on this book yet.

Libefty both cases, the production of money is excessive because it is no longer constrained by the informed and voluntary association of the buying public.

Bitcoin is not technically deflationary under one definition because its supply is set to grow gradually up to a terminal limit inflation and deflation in this sense refer liberyt quantity of units rather than relative exchange value.

A frank and enthusiastic endorsement of deflation is, at any rate in our time, one of the most important requirements to safeguard the future of liberty. Right and wrong in monetary policy does not concern the question: Clearly, these measures are radical by present-day standards, and they are not likely to find sufficient support. The production of money in a free society is a matter of free association.