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Interest free monetary policy Question

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mwselensky Posted: Sun, Sep 16 2012 12:46 AM

I am wondering If an interest free monetary policy As proposed by Margrit Kennedy Could be compatible with Austrian economics?  The concept of charging interest seems to complicate all economic theories. It introduces the concept of the  present value of money versus the future value of money.  There also seems to be a conflict with supply and demand values Those who lend do so because they have a surplus of money.  A surplus of anything reduces its value.  So charging interest seems counterintuitive.

Hey I am a newbie here certainly no expert   I believe in some Keynsian theory in  the short run  say a 20 to 30 year timespan.  Long run I am sure the Austrians are mostly right. Though a hard money return to the gold standard seems impractical.   I also think that  game theory will eventully provide the best economic models.  Mathematically proving  most Austrian concepts

I would like to hear what Some Austrian experts have to say about an an interest  free monetary policy

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John James replied on Sun, Sep 16 2012 12:51 AM

Welcome to the forum!  Definitely check out The Ultimate Beginner meta-thread for a comprehensive collection of links and threads on a wide range of topics.  I think you'll find it really useful.  (Also be sure to check out the welcome link there for forum tips and how-to's)

As for your question, Austrian theory really isn't compatible with any "monetary policy" (i.e the intervention and manipulation of the money supply).  Technically, legal tender laws are illegitimate, so theoretically one could simply try to institute their own "monetary policy" on some currency that they come up with, but obviously in a free market it's not likely many people would use such currency...let alone that any sort of policy concerning it would have much economic effect at all.

But as far as Austrian economics goes, no there really isn't any good that can come from artificial manipulation of the money supply.

 

The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.

-F.A. Hayek

 

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Thanks. I took the  Are you an Austrian? test.  I scored 78 out of 100.  One Scocialist answer. The rest I got wrongt were Chicago school answers. What can I say Milton Friedman was a keyensian. My socialist answer was about the cause of the great depression a protest answer. I hold the view that the Great depression was caused by the loss of  a generations productivity caused by the casualties in WWI,  Anyway 78 out of 100 is passig grade And I will follow the the thread you sent me Thanks again Mike s

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Awesome!  Great start for sure.  Feel free to PM with any questions, or even just create a thread.  But try to see if your issue has been brought up first before making a new thread.  If you find the topic has been raised before, go ahead and bump the thread.  Doesn't matter how old it is.  Go for it.

Anything else, hit us up.  Welcome to your journey

 

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eliotn replied on Sun, Sep 16 2012 2:30 AM

"If you find the topic has been raised before, go ahead and bump the thread.  Doesn't matter how old it is.  Go for it."

Didn't know that I should do that, anyways good reminder as always.

Schools are labour camps.

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It's usually a judgement call.  Sometimes a thread has gotten so long that most people won't bother to tackle it.  You can usually get a decent number of folks to check out what's new that bumped it back up, but if it's a continuation of the discussion of the thread, it's possible you won't get many new responses, as people aren't as likely to try and read through enough of the posts just so that they might join a long conversation. 

However there are others, like this one here, which was just bumped today after nearly 3 years...the new post isn't responding to anyone in the thread, it's just a response to the OP.  And you'll see it's gotten other responses today too.  Another big part of it is that it's just not that long.  You'll see that I actually didn't notice right away that it was actually as old as it was.

So if the thread where your issue is already discussed doesn't really answer your question, and you feel it is so long that many people won't really look at it, go ahead and make a new thread, but link to the previous one and explain what it is about that thread you didn't understand, or why it didn't answer your question.

This will help people not only better understand how to help you, but it will also make them more willing to do so, as they see you've made the effort to seek an answer for yourself first.

 

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