Credit Quote by Ludwig von Mises
“Economic theory has demonstrated in an irrefutable way that a prosperity created by an expansionist monetary and credit policy is illusory and must end in a slump, an economic crisis.”
About This Quote
Source Book: Human Action, Ludwig von Mises, 1949
Expansionary monetary and credit policies create temporary prosperity that inevitably leads to economic downturns.
In simple terms: Short‑term growth from easy money ends in crisis.
Key Takeaway
Avoid reliance on stimulus; aim for sustainable policies.
Themes
economics
monetary policy
business cycles
inflation
crisis
Mood
cautious
analytical
Type
theoretical
policy
When to use this quote
- government stimulus
- central bank actions
- investment decisions
- personal finance planning
Key Concepts
Austrian School
business cycle theory
credit expansion
Questions to Reflect On
- How can economies grow without expanding credit?
- What safeguards prevent a boom‑bust cycle?
A Different Perspective
Such policies can temporarily boost growth, masking underlying imbalances.
