Inverted Yield Curves, Recessions, and You
To understand what an inverted yield curve means, you must first understand what the yield curve is.
To understand what an inverted yield curve means, you must first understand what the yield curve is.
Bob Murphy discusses the Mises-Hayek theory of the boom-bust cycle, and explains the predictive power of an "inverted yield curve".
Bob shows why Ludwig von Mises thought any issuance of fiduciary media caused the boom-bust cycle.
The negative consequences of expansionary monetary policies take a while to show up, but Deutsche Bank's collapse may be the first sign of failure.
Even if business people learn to expect easy-money caused bubbles and busts — this would still not prevent the formation of a boom-bust cycle.
Inflation can always give only a temporary fillip to the economy, and will leave us with a legacy of postponed adjustments and new maladjustments which make our problem more difficult.
The “boom-bust” cycle is generated by monetary intervention in the market, specifically bank credit expansion to business.