Artificial changes in the money supply always disrupt the money cycle and cause price disruptions that lead to production problems in otherwise normally functioning markets. Introduction The complexity of large markets makes the diagramming of market processes difficult at best. One must take great care in not overstepping the bounds of logic and systems thinking. … Continue reading Disrupting the Money Cycle
Category: Monetary Intervention
Through the government chartered banking system the government intervenes in the normal operation of the market. They use stabilization as the justification of monetary intervention, but no policy could have a more destabilizing influence.