Monday, February 18, 2013

Murray Rothbard on the Chicago School and the State


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  6. This chart says it all: aggregate interest is the product of velocity and aggregate debt share.

    Real aggregate demand can be finance by the product of high velocity and low aggregate debt (freedom!) OR

    low velocity and high aggregate debt. (slavery) :(

    Fed policy keeps pushing the equilibrium to the right where it doesn't belong!