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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See also Lionel D. In the short run, the printing press could work wonders. Some present-day libertarians harbor a romantic picture of these days of the classical gold standard.

The result is seemingly unchecked growth of those governments that control the production of paper money. This point is by the way undisputed by all participants in the present debate on fractional-reserve banking.

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

The concomitant drastic reduction of the money supply entails a corresponding decrease of money prices, which negatively affects all market participants who have financed their operations through debt.

Our analysis therefore concerns both abd and closed economies in the usual connotations of the terms, which relates closedness and openness to political borders separating different groups of persons. Here we need to mention in particular two institutional forms of monetary interventionism: Its evilness is beyond dispute. In conclusion let us restate the main points: It thus destroys the economic basis of the false elites and obliges them to become true elites rather quickly, or abdicate and make way for new entrepreneurs and other social leaders.

Yet from this correct observation, Fisher jumped to the fallacious statement that “the liquidation defeats itself.

Today again, the deflationary collapse of our monetary system is a very real possibility. Liberty Fund, []p. Deflation creates a great liberry of losers, and many of these losers are perfectly innocent people who have just not been wise enough to anticipate the event. A frank and enthusiastic endorsement of deflation is, at any hylsmann in our time, one of the most important requirements to safeguard the future of liberty.

Deflation puts a brake—at the very least a temporary brake—on the further concentration and consolidation of power in the hands of the federal government and in particular in lierty executive branch. For a critical survey of the opinions of Austrian economists on deflation, see Philipp Bagus, “Deflation: But they lack support out of ignorance and fear.


In the memorable words of Irving Fisher, “The more the debtors pay, the more they owe” emphasis in original. In a free society the production of money is constrained within fairly narrow limits, limits that are determined by the willingness of other members of society to cooperate with our money producer rather than with someone else. Most other firms are increasingly dependent on credit to finance any large-scale ventures. It is not the money of the free market but the money of a partially enslaved society.

We are told by virtually all the experts on money and finance—the central bankers and most university professors—that the crisis hits us despite the best efforts of the Deflatoin that money, banking, and financial markets are 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 deflxtion great benefits that we would be foolish not to preserve.

Everybody from the miners to the owners of the mines, to the minters, and up to the customers who buy the minted coins—all benefit from uhlsmann production of money. Neither policy benefits the nation as a whole, but merely a husmann of the nation at the expense of other groups.

Deflation and Liberty by Jörg Guido Hülsmann

Scholastic scholars therefore spent no time enquiring about the benefits that changes of the money supply could have for the economy. He goes further than any previous hulsmnan in arguing that no measures of any kind should be undertaken to cure the bust through money creation, even under conditions of falling prices and falling money stock.

Use and production is entirely voluntary and entry open. The very attempt to liquidate assets to pay deflatioj debt entails a further reduction of the value of those assets, thus making it even more difficult for them to come even with their creditors. And in buying factors of production, the money producer competes with the deflayion of chairs, theater performances, telephones, carpets, cars and so on.

The point is that such increases or decreases should not be mistaken to benefit society as a whole. The important point is that the Bitcoin supply is set to grow at a specific, pre-defined, and gradually declining rate that no particular person or group can manipulate. Aug 27, Aug 21, “Bitcoin Panel: Mises and Rothbard adopted the point of view libertg already by Jean-Baptiste Say, who depicted deflation as a harmful practice of restoring monetary sanity after a period of extended inflation.


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Dendi rated it it was amazing Feb 15, What kind of money would prevail in a free society? Buy Now from Mises Store. Yulsmann was a managed standard p. Clark Jenkins rated it it was amazing Oct 04, This fact is the unshakable starting point for any sound reflection on monetary matters.

It would not be uncharitable to characterize inflation as a large-scale rip-off, in favor of the politically well-connected few, and to the detriment of the hulsmamn destitute masses. Governments still enjoyed monopoly power in the field of coinage, a remnant of the medieval regalia privileges that prevented the discovery of better coins and coin systems through entrepreneurial competition. Lists with This Book. Consider just the most important case of private debt, namely, debts incurred for building or purchasing a home.

I was hoping it would address what would happen in a “deflationary spiral” where deflation leads to currency hoarding and eventually the currency bubble bursting, possibly addressing historical incidences of that type of scenarios if they exist. Today, the picture has been reversed, and the most fundamental reason for this reversal is paper money.

In short, financial decision making will be even more conservative and more decentralized than before. It not only brings the inflated monetary system back to rock bottom, it brings the hulssmann society back in touch with the real world, because it destroys the economic basis of the social engineers, spin deflayion, and brain washers. If we follow a hands-off policy, the majority of experts tell us, the banking industry, the financial markets, and much of the rest of the economy will be wiped out in a bottomless deflationary spiral.

In a truly free society, the production of money is a matter of private initiative. Yale University Press, Be the first to ask a question about Deflation and Liberty.

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