Saturday, 22 July 2017

cantillon effects

Cantillon Effects and Money Neutrality

June 27, 2017

Money neutrality is a key principle in monetary economics. As might seem obvious, the amount of goods that can be produced depends on the availability of factors of production (such as capital and labor) and on technological knowledge. For instance, the fact that more dollars are in circulation does not mean we can produce more […]

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The Cantillon Effect

Posted by Gonzalo Schwarz
August 7, 2012

By John Aziz Expansionary monetary policy constitutes a transfer of purchasing power away from those who hold old money to whoever gets new money. This is known as the Cantillon Effect, after 18th Century economist Richard Cantillon who first proposed it. In the immediate term, as more dollars are created, each one translates to a […]

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Wall Street Bull

Posted by Gonzalo Schwarz
May 21, 2012
in Humor

The fiat money laundered into the economy by the Federal Reserve System has to be injected somewhere. The stock market is often used as an indicator of the health of the economy, but are most of the gains merely reflecting Cantillon effects? The intertwined and symbiotic relationship between the government and the largest firms and […]

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