The Fallacy of Stable Prices

The Federal Reserve’s fixation with “stable prices” has led to an unstable economy for the past century.

Source: Mises Institute

DW NOTE

The Fed spent a century propping up price levels in the name of stability and delivered the opposite — serial bubbles, systematic misallocation, and a political class addicted to monetary accommodation. Fisher called the top in 1929 predicting permanent prosperity; Keynes wanted inflation to euthanise the rentier. Both got their wish: depressions papered over with freshly printed claim-checks on wealth that never materialised.

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