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 system.
"The Development of the
Misesian Theory of Interventionism." In Method, Process, and Austrian Economics: Essays in Honor of Ludwig von Mises.
However,
Misesian 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 INSIGHTS