From an address by Ludwig von Mises in 1931, published in The Causes of the Economic Crisis and Other Essays Before and After the Great Depression (PDF) (emphasis mine): According to the circulation credit theory (monetary theory of the trade cycle), cyclical changes in business conditions stem from attempts to reduce artificially the interest rates on loans through measures of banking policy—expansion of bank credit by the issue or creation of additional fiduciary media (that is banknotes and/or checking deposits not […]
Tags: Banking, Credit, economics, interventionism, Mises