Furthermore, in the nature of things, credit contraction is severely limited—it cannot progress beyond the extent of the preceding inflation.14 Credit expansion faces no such limit.

Les interventions des banques centrales au printemps 2020 n’ont pas été justifiées politiquement pour monétiser un programme de relance keynésien comme ce fut le cas après la Seconde Guerre mondiale. L’intervention est restée circonstanciée, proportionnée à l’objectif d’inflation, et surtout convoquée en urgence par l’instabilité financière. Pourta

The projects that beat inflation but do not offer positive real returns effectively reduce society's capital stock, but are nonetheless a rational alternative for investors because they reduce their capital slower than the depreciating currency. These investments are what Ludwig von Mises terms malinvestments—unprofitable projects and investments t

When prices go up because a currency is being debased, that is inflation. It might make a social and political difference if the price increases are in milk and bread, or housing and healthcare, rather than in financial assets, but economically it is irrelevant. It reflects only what the artificial money was first used to buy (also known as the Can