Money and Banks

Ignoring time preference is the fundamental error behind monetary planning. It is why in a successful economy, monetary intervention by the state is kept to a bare minimum, or preferably banished altogether.

Monetary policy has gone from being a tool to support fiscal reforms to an excuse for not implementing them.

Deflation is not a matter of animal spirits or consumer expectations. It is the result of earlier creation of money "out of thin air" by central banks and commerical banks. Deflation is the natural result.

Central banks' economic models repeatedly and incessantly over-estimate economic growth. We can only speculate as to their motivation.