Economist Tells Congress to Shut Down the Fed

Economist Robert Murphy Ph D testified today before the House Committee on Oversight and Government Reform. When questioned by Congressman Dennis Kucinich, he gave testimony you don't always hear in the House.

Murphy, who is a specialist on the Great Depression, when questioned by Representative Kucinich as to whether the Federal Reserve should be transferred so that it comes under control of the Treasury, told the Congressman that it would be a better option to just shut the Federal Reserve down.

Murphy, who should be considered an Austrian economist, heavily influenced by Murray Rothbard, holds the view that the Federal Reserve is the primary cause of the business cycle. Through manipulation of interest rates, Austrian economists hold that the Fed distorts the structure of the economy, which eventually results in serious price inflation.

Austrian school economists were the only economists that in general warned about the financial and economic crisis that the United States just experienced.

Murphy is currently warning that the recent money printing the Fed has done will result in another bout of serious price inflation. Once the inflation hits, he expects the economy to face stagflation, price inflation and a slowing economy.

Murphy holds a Ph D from New York University. He is Senior Fellow, Bus. & Econ. Studies, Pacific Research Institute and Economist, Institute for Energy Research.

He is author of:

The Politically Incorrect Guide to Capitalism, Regnery 2007.

Study Guide for Ludwig von Mises’ Human Action, Ludwig von Mises Institute.

Study Guide for Murray Rothbard’s Man, Economy, and State with Power and Market, Ludwig von Mises Institute, Summer 2006.