Age of inflation

[Book Overview and Front Matter]: This segment contains the introductory front matter, including a biographical sketch of Hans F. Sennholz and an overview of the book 'Age of Inflation'. It establishes the work's foundation in the Austrian School of economics and outlines the book's scope, which covers the history of German inflation, critiques of monetarism and Keynesianism, the role of the Federal Reserve, and recommendations for a sound monetary system based on gold. [Publication Details and Table of Contents]: This segment provides the publication metadata, copyright information, and the complete Table of Contents for the volume. The contents list six major chapters covering the value of money, causes of inflation (including critiques of the Transfer Society and Monetarists), historical case studies of German hyperinflation, an analysis of the Federal Reserve, a critique of Keynesian depression policies, and a proposal for monetary stability through gold. [Table of Contents (Continued) and Preface]: The author introduces inflation as a pervasive contemporary evil and defines the economist's task as unmasking popular errors that cause it. He suggests that the sight of such common harm may eventually lead society toward a point of cure. [Introduction: The Transfer Society and Monetary Policy]: Sennholz argues that public opinion shapes the character of government, contrasting systems of individual freedom with 'transfer societies' that use money as a tool for political force. He details how deficit spending and the Federal Reserve have eroded the dollar's value since 1965, resulting in a massive redistribution of wealth from creditors to debtors. He proposes a four-step plan for monetary stability: balancing the budget, inactivating the Federal Reserve, making currency redeemable in gold, and cutting business taxes to facilitate recovery from the inevitable recession. [Chapter I: The Value of Money]: This chapter explores the nature and origin of money using Carl Menger's theory, rejecting the idea that money is a creation of the state. Sennholz explains the transition from commodity money (gold/silver) to fiat paper through the lens of subjective value and Mises's regression theorem. He analyzes factors influencing the demand for money—including productivity, taxation, and clearing systems—and critiques 'acatallactic' theories like Keynesianism and Fisher's quantity theory for ignoring individual choice in favor of holistic mathematical equations. [Chapter II: The Causes of Inflation]: Sennholz identifies government monopoly over money as the primary cause of inflation, tracing the historical progression from coin debasement to legal tender laws and central banking. He provides an extensive critique of Keynesian 'New Economics,' arguing that its focus on aggregate demand and the Phillips Curve fails to account for institutional unemployment and capital consumption. The section also critiques the Monetarist/Chicago School approach; while appreciating their challenge to Keynesianism, Sennholz argues that Friedman's 'rules of the game' and 3-5% expansion targets still cause malinvestments. He concludes with an Austrian analysis of the Great Depression, blaming it on 1920s credit expansion followed by Hoover's protectionism and tax hikes rather than a lack of government intervention. [Chapter III: Age of Inflation]: This chapter traces the transition from the international gold coin standard to the current era of managed fiat floats. Sennholz describes the three stages of inflation: 'blissful ignorance,' the 'second stage' where prices rise faster than the money supply due to hedging, and the final 'crack-up boom.' He provides a detailed historical analysis of two German inflations: the 1914-1923 hyperinflation, fueled by erroneous theories about the balance of payments and speculators, and the 1933-1948 period under the Nazis and Allied occupation. He highlights how the 1948 currency reform succeeded only because Ludwig Erhard simultaneously abolished economic controls, allowing the market to function. [Chapter IV: The Federal Reserve System]: Sennholz critiques the Federal Reserve System as a tool of government control that has caused unprecedented economic instability. He explains the failure of the 'commodity bill doctrine' and describes how the Fed's powers—open market operations and varying reserve requirements—facilitate the inflationary financing of government deficits. The section concludes with a warning about 'Emergency Banking Regulation No. 1,' which authorizes the seizure and blocking of private bank deposits during a national emergency, characterizing the Fed as a ready instrument for government tyranny. [The Emergency Banking Regulation and Legal Violations]: Sennholz analyzes Chapter VI of the Emergency Banking Regulation, arguing it effectively nationalizes the banking system by restricting credit to government-approved purposes. He contends the regulation violates the Fourth and Fifth Amendments, contract law, and bankruptcy statutes by prioritizing state interests over individual property rights and due process. [Economic Implications of Emergency Financing]: This section explores the political and economic consequences of a command economy during national emergencies. Sennholz predicts that massive government spending will lead to hyperinflation, forced savings through anti-hoarding laws, and eventual currency repudiation, using historical parallels from World War II and totalitarian regimes. [Chapter V: The American Economy Is Not Depression-Proof]: Sennholz challenges the prevailing belief that modern economic policy can prevent another Great Depression. He critiques Keynesian deficit spending and credit expansion, contrasting them with the Austrian theory of the trade cycle which identifies artificial interest rate suppression as the cause of economic booms and subsequent busts. [The Illusion of Automatic Stabilizers and Floating Rates]: A critique of Milton Friedman's 'built-in stabilizers' and the system of floating exchange rates. Sennholz argues that the FDIC and government obligations in bank portfolios merely institutionalize inflation, while floating exchange rates create erratic market conditions that disrupt international trade and necessitate eventual currency devaluation. [Chapter VI: The Quest for Monetary Stability]: Sennholz outlines a program for restoring monetary integrity, beginning with the abolition of legal tender laws and the central banking system. He emphasizes that monetary stabilization must be accompanied by a return to a flexible labor market, including the repeal of minimum wage laws and the reduction of union privileges to prevent mass unemployment during the transition. [Building on Gold and the Ethics of Redistribution]: The author proposes a step-by-step return to the gold standard through the restoration of gold contracts and private minting. He concludes with a moral appeal against the 'Redistributive State,' offering a personal 'covenant of redemption' to reject government favors and restore individual self-reliance. [Chapter VII: Inflation and Liberty]: In the final chapter, Sennholz argues that inflation is the mortal enemy of liberty, leading inevitably to price controls and a command economy. He warns that the collapse of the redistributive state may result in civil strife and the rise of authoritarian 'law and order' regimes unless the trend is reversed through moral and economic education. [Glossary of Economic Terms]: A comprehensive glossary defining key economic terms used throughout the text, including definitions for various gold standards, Keynesian concepts, and Austrian school terminology. [Biographical Index of Economists]: Biographical sketches of influential 20th-century economists, covering thinkers from the Austrian, Chicago, and Keynesian schools. [Bibliography and Sources]: A list of articles and books used as sources for the text, focusing on monetary theory, the history of inflation, and international finance. [Subject Index and Publisher's Note]: Subject index for the book and a concluding biographical note on Hans F. Sennholz by the publisher, Western Islands.