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[quote user="Caley McKibbin"] What it comes down to is the difference between the natural interest rate and the market interest rate. [/quote] Could you elaborate a little on this, for me?
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[quote user="Esuric"] [quote user="AustrianAntitheist"]So, then, is the Austrian case for gold merely an empirical one? Namely, that experience has shown us that gold money is far harder to mine, and therefore the supply of gold money is far more difficult to increase in large quantities, and therefore only causes minor (perhaps
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[quote user="chloe732"] [quote user="AustrianAntitheist"]I can see how a system where paper money is loaned out and pyramided ontop of itself could amplify inflations, but couldn't business cycle-causing inflations still happen under a gold-based system even where fractional reserve banking is nonexistant, for the reasons outlined
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[quote user="Stranger"] [quote user="AustrianAntitheist"] Why does the money need to be paper for there to be an artificial boom? [/quote] It doesn't need to be paper, it needs to be credit . If I have a 1000 gold ounces in savings, then I can make a loan for 1000 ounces to person A, also person B, person C, etc without limit
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[quote user="Stranger"] [quote user="AustrianAntitheist"]Now, if an economy were under a 100% gold coin standard, gold miners happened upon a large amount of gold in a cave, minted it into coins and put the coins into circulation, wouldn't this increase in the money supply also make it seem to investors as though real savings
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[quote user="scineram"] Yes, I think it would. [/quote] So, then, is the Austrian case for gold merely an empirical one? Namely, that experience has shown us that gold money is far harder to mine, and therefore the supply of gold money is far more difficult to increase in large quantities, and therefore only causes minor (perhaps, almost unnoticeable
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1). IDM, classical, 80's music. 2). V.O.N. (a libertarian IDM project: http://myspace.com/listentovon ) 3). "Thrice Vexed" by Blaerg
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I'm sure this question has already been debated to death around here, but I used the search option and couldn't find a thread on this particular question, so I'll start a new one. Could an influx of new gold cause a business cycle under a 100% gold coin standard? My understanding of ABCT is that when there is an expansion in circulation