Could Gold Discoveries Cause the Austrian Boom-Bust Cycle? – InvestingsDontLie

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Could Gold Discoveries Cause the Austrian Boom-Bust Cycle?

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February 25, 2021

In a 2019 article, Bob quoted Mises who believed that new gold discoveries, in principle, could cause a (small) boom-bust cycle if the gold hit the loan market before other sectors. Walter Block and Bill Barnett have responded in a new article, arguing that in a free market, new commodity money can’t cause such distortions.

Mentioned in the Episode and Other Links of Interest:

The YouTube version of this interview
Bob’s 2019 QJAE article, which Block & Barnett (2020) criticizes
Bob’s blog post explaining why Block & Barnett (2020) misunderstands his argument in his 2019 QJAE paper
Bob Murphy Show ep. 67, in which Block and Barnett explained their problems with the Hayekian triangle
Rothbard’s classic essays on utility & welfare economics and the legal treatment of air pollution
Block and Barnett’s paper on the optimal quantity of money
One entry in Block and Barnett’s debate over maturity mismatching; it contains references to the earlier volleys for the interested reader.

For more information, see BobMurphyShow.com. The Bob Murphy Show is also available on iTunes, Stitcher, Spotify, and via RSS.

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