Aug 2, 2019

Ludwig von Mises on credit expansion and the boom-bust cycle

True, governments can reduce the rate of interest in the short run. They can issue additional paper money. They can open the way to credit expansion by the banks. They can thus create an artificial boom and the appearance of prosperity. But such a boom is bound to collapse soon or late and to bring about a depression.

~ Ludwig von Mises, Omnipotent Government, p. 251

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