Tightening the interest rate hurts both bubble and solid businesses. The Fed should just focus on reducing the money supply.
Original Article: “The Fed’s Tightening Will Only Drag Out the Economic Slump”
This Audio Mises Wire is generously sponsored by Christopher Condon.
The Mises Institute exists to promote teaching and research in the Austrian school of economics, and individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard. These great thinkers developed praxeology, a deductive science of human action based on premises known with certainty to be true, and this is what we teach and advocate. Our scholarly work is founded in Misesian praxeology, and in self-conscious opposition to the mathematical modeling and hypothesis-testing that has created so much confusion in neoclassical economics. Visit https://mises.org