Bank Quote by Murray Rothbard
“The 'boom-bust' cycle is generated by monetary intervention in the market, specifically bank credit expansion to business.”
About This Quote
Source Book: Man, Economy, and State, 1962
Monetary policy creates artificial booms and busts through credit expansion.
In simple terms: Bank credit expansion causes economic cycles.
Limit credit growth to stabilize economy.
Themes
Mood
Type
When to use this quote
- policy debate
- financial regulation
- investment planning
- business forecasting
- academic research
Key Concepts
Questions to Reflect On
- Is credit expansion the primary cause of booms?
- What alternative policies could mitigate cycles?
Critics argue other factors also drive cycles.