Central banks live by a simple financial principle: Whenever economic activity stagnates or declines, they quickly lower their interest rates and expand their credits. But when business seems to improve, they hesitate and vacillate in removing the rate cuts. The consequence is a permanent addition to liquidity. According to calculations of the German central bank, [...]
May 31st, 2007 | Dr. Hans Sennholz | 0 comments | ContinuedArchive for Dr. Hans Sennholz
(February 3, 1922 - June 23, 2007) (born in Brambauer, Germany) was an economist from the Austrian school of economics who studied under Ludwig von Mises. He taught economics at Grove City College, 1956-1992, having been hired as department chair upon arrival. After he retired, he became president of the Foundation for Economic Education, 1992-1997.
American Debt and the Future of the U.S. Dollar
We live in a period of worldwide economic expansion and prosperity. The world economy is said to grow this year at some five percent, which will be the third year above the historic average. Even if, in the coming year, the growth rate should decline a little, the global economy looks bright and prosperous. Led [...]
December 13th, 2006 | Dr. Hans Sennholz | 0 comments | Continued