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For centuries, production in capitalist countries seems to progress in some kind of “cycles”. Every few years, the economy experiences a period of sharp economic growth which is then upset by a collapse of businesses and a high unemployment rate — a recession. This cyclical movement of the market, repeatedly going from an economic boom to bust, is known as the “business cycle”. Social scientists of multiple disciplines have suggested numerous explanations for this phenomenon, from “under-consumption” to some psychological propensity. Yet, so far, no popular counter-measure pursued has solved this problem. …


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Hard money is one of the most well-known monetary terms used in practical discussions. From political discourses on policy decisions to the commentary debates of the financial sector, the term can be heard often enough to make even the ordinary citizens familiar with it. However, and despite its substantial use, while the concept of hard money has a very clear connotation to traditional fiscal responsibility with the monetary system, its exact definition is still quite vague. While for many, it is merely a practical term almost synonymous to a gold-backed system, its conceptual meaning clearly goes beyond that. For theoretical…


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The introduction of Bitcoin to the world ten years ago as a new monetary system sparked new interest in the field of monetary economics. After a century of fully nationalized money production systems, and about five decades of an irredeemable national paper money standard, the battle for sound money seemed to be long lost. A return to gold, even within the circles of Austrian and free-market thinkers, became an increasingly less practical approach, and it seemed there was little left to do but wait for the inevitable collapse of the contemporary system, to which we arguably came close several times.¹…


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In the previous article, we dealt with the question of what money is, discussing its origins, and nature as a widely observable phenomenon. We saw that money is not the result of legislation, nor is it a collective agreement of the market participants. Rather, it is the predictable result of economizing individuals exchanging their commodities for more saleable ones, in attempts to get exposure to more and better exchange opportunities. Money then spontaneously emerges as a widespread medium of exchange.

The understanding of the nature of money allowed us to identify saleability, the extent of the economic sacrifices required to…


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Money is probably the most discussed phenomenon in economic literature. The issue of its origin and nature was extensively discussed in the past by a vast number of economists and political scientists. Throughout history, the dominant view on this issue of money can trace its acceptance to the writings of such old thinkers like Plato and Aristotle, whose positions are well expressed by the following quote:

“Plato calls money a “token for purposes of exchange” (Republic, II. 371; see B. Jowett, trans. & ed., The Dialogues of Plato, London, Oxford University Press, 1892, III, 52), and Aristotle, in a much…


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The foundations for the prominent economic theory supporting leading policies worldwide for the last few decades was laid down by the mathematician John Maynard Keynes. The ideas he pushed and promoted during his lifetime are still common among academics and policymakers, and his theory is almost exclusively the one used for economic education.

However, as was pointed out many times before, the theory he presented, when logically scrutinized, appears to be flawed in many aspects¹.

In this article, I’d like to focus on a claim popularized by this theory, which is that spending is the driver for economic growth, and…

Ben Kaufman

Coding and Austrian Economics

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