Tag Archives: money

The Inflation Fallacy and central banking debates in the US

Among my favorite contemporary academic economists is N. Gregory Mankiw. I have always found his academic writings very lucid and to the point. I was once again reminded of this today, when I stumbled over some debates about abolishing the Federal Reserve System. Opponents of central banking, mostly self-proclaimed followers of the “Austrian school”, view central banks as monopoly powers that undermine free markets and are inherently inflationary – implying a government-supported devaluation of the population’s wealth. In the United States, these opponents are having golden days, as they can blame the Fed for having not only caused the financial crisis, but also for engaging in irresponsible quantitative easing that … Continue reading

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