How Fractional Reserve Banking Causes the Business Cycle
Life is full of ups and downs, but that doesn’t mean the market needs to be as well. In fact, Austrian economists argue that business cycles only exist due to credit expansion unbacked by real savings.
Join the Mises Circle to discuss chapter 5, “Bank Credit Expansion and Its Effects on the Economic System”, of Jesús Huerta de Soto’s treatise Money, Bank Credit, and Economic Cycles.
Before the discussion, our very own Pierre will condense 800 pages of hardcore economic theory into 10 minutes of hardcore economic presentation.
Link: http://mises.org/document/2745/ (For extra credit, read the whole book!)
When: Monday, October 22nd at 7pm
Where: Waggener 308
This article should be run again as a Mises Daily article to counter all the negative press LvMI is getting for running Shostak’s article last week. This is a much more informative article than Shostak’s.
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