--- title: "Meaning & Key Takeaway of: Credit expansion can bring about a…" description: "\"Credit expansion can bring about a temporary boom. But such a fictitious prosperity must end in a general depression of trade, a slump.\" — Ludwig von M..." image: "https://sms4smile.com/quotes/i/292/ludwig-von-mises-364_credit_credit-expansion-can-bring-about-a-tempo_228511.png" --- # Credit expansion can bring about a temporary boom. But… ![“Credit expansion can bring about a temporary boom. But such a fictitious prosperity must end in a general depression of trade, a slump.” quote by Ludwig von Mises](https://sms4smile.com/quotes/i/292/ludwig-von-mises-364_credit_credit-expansion-can-bring-about-a-tempo_228511.png) [Download](https://sms4smile.com/quotes/i/292/ludwig-von-mises-364_credit_credit-expansion-can-bring-about-a-tempo_228511.png) [Open image](https://sms4smile.com/quotes/i/292/ludwig-von-mises-364_credit_credit-expansion-can-bring-about-a-tempo_228511.png) > “Credit expansion can bring about a temporary boom. But such a fictitious prosperity must end in a general depression of trade, a slump.” [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Credit expansion creates a short‑term surge, but it is built on false expectations and inevitably leads to a broader economic downturn. **In simple terms:** Booms from easy money are temporary and end in a slump. Key Takeaway Beware easy credit; focus on sustainable growth. Themes economics business cycles inflation policy risk Mood cautious analytical Type economic policy When to use this quote - investment decisions - government policy - personal finance - entrepreneurship Key Concepts monetary theory business cycle theory credit bubbles Questions to Reflect On - How can policymakers prevent credit‑driven booms? - What safeguards protect businesses during downturns? A Different Perspective If credit is not managed, the bust can be severe. ★ ★ ★ ★ ★ No ratings yet [Credit](https://sms4smile.com/quotes/about/credit/) [Customer](https://sms4smile.com/quotes/about/customer/) [Prosperity](https://sms4smile.com/quotes/about/prosperity/) [Trade](https://sms4smile.com/quotes/about/trade/) ## Related quotes > [There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis…](https://sms4smile.com/quotes/ludwig-von-mises/there-is-no-means-of-avoiding-the-final-collapse-of-a-boom-brought/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [Government policies try to prevent the emergence of serious unemployment by credit expansion, i.e., inflation. The outcome was rising prices, renewed demands for higher…](https://sms4smile.com/quotes/ludwig-von-mises/government-policies-try-to-prevent-the-emergence-of-serious/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [Credit expansion is the governments' foremost tool in their struggle against the market economy. In their hands it is the magic wand designed to…](https://sms4smile.com/quotes/ludwig-von-mises/credit-expansion-is-the-governments-foremost-tool-in-their-struggle/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [Once public opinion is convinced that the increase in the quantity of money will continue and never come to an end, and that consequently…](https://sms4smile.com/quotes/ludwig-von-mises/once-public-opinion-is-convinced-that-the-increase-in-the-quantity-of/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [The final outcome of the credit expansion is general impoverishment.](https://sms4smile.com/quotes/ludwig-von-mises/the-final-outcome-of-the-credit-expansion-is-general-impoverishment/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [No one should expect that any logical argument or any experience could ever shake the almost religious fervor of those who believe in salvation…](https://sms4smile.com/quotes/ludwig-von-mises/no-one-should-expect-that-any-logical-argument-or-any-experience/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [One day, because they realize for some reason or other that they must stop credit expansion, the banks do stop creating new credit to…](https://sms4smile.com/quotes/ludwig-von-mises/one-day-because-they-realize-for-some-reason-or-other-that-they-must/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [Depression is the aftermath of credit expansion.](https://sms4smile.com/quotes/ludwig-von-mises/depression-is-the-aftermath-of-credit-expansion/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [What is needed for a sound expansion of production is additional capital goods, not money or fiduciary media. 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