This common view is often labeled the quantity theory of money. Only
economists with a Mercantilist or Keynesian ideology even challenge this
view. However, only Austrians can explain the current dilemma: why
hasn't the massive money printing by the central banks of the world
resulted in higher prices.
Austrian economists like Ludwig von Mises, Benjamin Anderson, and F.A. Hayek saw that commodity prices were stable in the 1920s, but that other prices in the structure of production indicated problems related to the monetary policy of the Federal Reserve. Mises, in particular, warned that Fisher's "stable dollar" policy, employed at the Fed, was going to result in severe ramifications. Absent the Fed's easy money policies of the Roaring Twenties, prices would have fallen throughout that decade.
Read more: http://www.rightsidenews.com/2013011631777/us/economics/where-is-the-inflation.html
Austrian economists like Ludwig von Mises, Benjamin Anderson, and F.A. Hayek saw that commodity prices were stable in the 1920s, but that other prices in the structure of production indicated problems related to the monetary policy of the Federal Reserve. Mises, in particular, warned that Fisher's "stable dollar" policy, employed at the Fed, was going to result in severe ramifications. Absent the Fed's easy money policies of the Roaring Twenties, prices would have fallen throughout that decade.
Read more: http://www.rightsidenews.com/2013011631777/us/economics/where-is-the-inflation.html
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