Monetary Inflation: An Economic and Ethical Evil

Monetary inflation is unsound for both economic and ethical reasons.  Increasing the money supply can never provide a general benefit to the whole of society.  Inflation merely results in higher prices paid for the same quantity of goods.  At most it benefits those who receive the money sooner at the expense of those who receive it later or not at all.  What is worse, inflation via credit expansion creates the business cycle.  Inflationary credit expansion sets in motion a boom that necessarily resolves itself in in a bust whose twin children are capital consumption and unemployment.

State monopolization  of the money production process and government inflation violates the Christian ethic of private property.  It violates the ethical principles of voluntary exchange and is inherently fraudulent. Inflation is both economically dangerous and ethically unjust.”

Foundations of Economics—A Christian View, pp. 380-381, Shawn Rittenour


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