Linh Dinh (and Wilhelm Röpke) on the Evil of Inflation
- Inflation is your dollars deflating. It’s your money going down, down, down, depreciating as the Federal Reserve injects more bucks into our banking system. And since the biggest banks own the Federal Reserve, the Fed is the banking system. Each time these banks give cash to themselves to be lent to you at interest, your dollars become a bit more worthless.
That succinct definition brings to mind this blogger's favorite economist, Wilhelm Röpke, who, the Ludwig von Mises Institute's Shawn Ritenour reminds us, identified "inflation as a primary source of social decay" — Biography of Wilhelm Röpke (1899-1966): Humane Economist. An essay by the man himself — "Repressed Inflation": The Ailment of the Modern Economy.
Labels: The Dismal Science