by Sennholz
[Boom, Bang! Dangers of the Inflation We Are In]: Hans Sennholz critiques the inflationary monetary and fiscal policies of the late 1960s, specifically targeting the Federal Reserve's 'even keel' policy and the Johnson Administration's 'Great Society' spending. He argues that artificial credit expansion and low interest rates lead to a temporary boom characterized by rising prices and malinvestments, which inevitably result in a recession. Sennholz emphasizes that inflation acts as a hidden tax that disproportionately harms fixed-income earners and savers while distorting the capital market, and he asserts that only the federal government is responsible for the resulting economic instability.
Hans Sennholz critiques the inflationary monetary and fiscal policies of the late 1960s, specifically targeting the Federal Reserve's 'even keel' policy and the Johnson Administration's 'Great Society' spending. He argues that artificial credit expansion and low interest rates lead to a temporary boom characterized by rising prices and malinvestments, which inevitably result in a recession. Sennholz emphasizes that inflation acts as a hidden tax that disproportionately harms fixed-income earners and savers while distorting the capital market, and he asserts that only the federal government is responsible for the resulting economic instability.
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