Historian Steve Davies is one of my all-time favorite scholars. Here’s his recent take on today’s market turmoil.
My friend, the great monetary theorist and historian George Selgin, once wrote a pamphlet for the Institute of Economic Affairs entitled Less Than Zero, arguing that in times of economic growth the price level should be allowed to fall (as more goods being chased by a stable supply of money means that each unit of money will buy more goods). It’s an important point that is, sadly, too little heeded.
A shorter version of George’s pamphlet is published here, by National Review.
