Maintaining a fairly stable level of total spending is key to dampening the business cycle, and a free banking system does this automatically because the money stock grows when velocity falls and shrinks when velocity rises.
causalpending
Speaker
George SelginEvidence Quote
“you want to make sure the money stock grows when velocity of money goes down and shrinks when velocity goes up well that's just what happens in a free banking system and so it has it's automatic tendency to dampen the business cycle”
Created: 6/15/2026, 9:20:23 AM
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