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Yes, that sounds right, I'd specifically say the price that is distorted, relative to all other prices, is the interest rate, which is affected immediately upon money creation. It takes time before other prices in the economy rise therefore giving the immediate illusion to the borrower that a project...
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I just finished the lecture course by Peter Klein and Joe Salerno, the Causal-Realist Approach to Economics, and the last lecture on banking and the business cycle was very fascinating. However, I was confused when Mr. Salerno said that the costs go up in the capital goods industry. Firstly, bank reserves...