In this paper, I elaborate on this problem, (2) showing that the FRFB claims are demonstrably incompatible with the Misesian
approach to money and banking.
These models missed the Misesian
distinction between the demand for cash balances, on the one hand, and the quantity of money to be held, on the other.
This comes from a Misesian
attempt to sketch out "a liberal foreign policy." That section of Liberalism is a remarkable collection of caveats against allegedly peace-fostering policies that could backfire (from "standardized" education to the creation of "economic areas").
"The Economic Theory of Bureaucracy: Insights from the Niskanian Model and the Misesian
Approach," The Quarterly Journal of Austrian Economics 12(3): 57-78.
When we consider the important role of appraisement and monetary calculation in the Misesian
system, it becomes clearer why monetary injections into the banking system cause a boom.
Uncertainty, discovery, and human action: A study of the entrepreneurial profile in the Misesian
"The Development of the Misesian
Theory of Interventionism." In Method, Process, and Austrian Economics: Essays in Honor of Ludwig von Mises.
praxeology and its value-free economics is not enough to establish a moral argument for a free society.
Hence, in the Misesian
view, a temporary deviation from the natural rate of interest distorts the temporal structure of production by encouraging projects that are ultimately unsustainable.
It is the mission of Mises Canada to advance the Misesian
tradition of thought through the defence of the market economy, private property, and sound money.
CREDIT EXPANSION AS SOURCE OF MACROECONOMIC RISKS--REDISCOVERY OF MISESIAN