Low interest rate policy

The ECB Faces a Predicament, the Euro an Impasse

With the now obvious failure of the ECB’s inflationary low interest rate policy, things are now also bad for the euro. The “whatever it takes” approach to saving the euro has reached a point where a reconsideration is necessary.

Do We Need a ‘Great Reset’, or More Capitalism?

For many, capitalism needs to be reinvented. And yet it proved to be robust, innovative and enormously successful, especially during the pandemic. Thus, the idea of a “Great Reset” merely serves familiar anti-capitalist prejudices.

Inflation Is Always and Everywhere a Monetary Phenomenon, Even in Pandemic and War

Damaged supply chains and war are boosting prices, but they are not the only real cause of rising inflation. The problem is the central banks’ expansionary monetary policy.

With a Carrot and a Stick: The Effects of the European Central Bank’s Negative Interest Rate Policy on the Banking System

The ECB is weakening bank profitability while strengthening it in a way that allows it to implement policy goals with the help of commercial banks. Read the new study.

The Austrian Academy 2021: Liberation from Academic Lockdown

Capitalism and the market economy are the foundations of our prosperity, which, thanks to globalization, is also spreading to places in which poverty still prevailed decades ago. At the Austrian Academy 2021 experts explain to twenty-two young people why this is so.

Paper Money Tricksters: From John Law to Today’s Central Banks

Today’s money experiments follow to the letter the procedure of one of the greatest money tricks in history: the paper money experiment of John Law in France 1716-1720.

Navigating Crises without a Compass: Politics in the Quicksand of Interventionism

Under the guise of the COVID-19 crisis, attempts are being made to use the crisis for a political agenda that would not have found majority support before. The role of the state is expanding. A new policy approach is necessary to secure prosperity.

Low Interest Rate Policy Cripples the Economy and Reduces Prosperity

Japan’s low interest rate policy began 30 years ago, about 15 years earlier than in the EU. But three decades of low interest rate policy meant three lost decades for Japan. In an interview with Stefan Beig, economist Gunther Schnabl explains why the low interest rate policy is so damaging to prosperity.

A New Era: Politicians and Central Banks Reinvent the Wishing-Table

Unbelievable national debts and deficits, direct access of politicians to the printing press and unconditional payments to citizens in the USA. The EU, for its part, is embarking on the path of massive new national debt. Can this possibly end well?

Germany’s Poverty: Imported and Homemade

In Germany’s super-election year, the eternal debate about social justice is taking on even more teeth. One-sided interpretations are used by the Greens, SPD and Left Party to justify even more redistribution. The real causes are being concealed.

Money Glut, Debt, and Rolling Central Bank Guarantees: Full Steam Ahead towards the Abyss

Central banks have become prisoners of their own policies with their perpetual monetary glut. Everyone knows this, and everyone knows that everyone knows it. But proclaiming a different message, they shirk responsibility. The party must go on at all costs.

The U.S. in Decadence? The Warning Signs Cannot Be Overlooked

The United States today exhibits characteristics of decadence that historians have considered instrumental in the decline or loss of power of earlier empires. A brief analysis.