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Bank Quote by Murray Rothbard

“The 'boom-bust' cycle is generated by monetary intervention in the market, specifically bank credit expansion to business.” quote by Murray Rothbard
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“The 'boom-bust' cycle is generated by monetary intervention in the market, specifically bank credit expansion to business.”

Murray Rothbard

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.

Key Takeaway

Limit credit growth to stabilize economy.

Themes

economics monetary policy business cycles

Mood

critical inquisitive

Type

economic theoretical

When to use this quote

  • policy debate
  • financial regulation
  • investment planning
  • business forecasting
  • academic research

Key Concepts

credit inflation recession

Questions to Reflect On

  • Is credit expansion the primary cause of booms?
  • What alternative policies could mitigate cycles?
A Different Perspective

Critics argue other factors also drive cycles.

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