Ludwig von Mises: this article appears in The Causes of the Economic Crisis, and Other Essays Before and After the Great Depression (2006)

The Economic Consequences of Cheap Money

by Ludwig von Mises

The author of this paper is fully aware of its insufficiency. Yet, there is no means of dealing with the problem of the trade cycle in a more satisfactory way if one does not write a treatise embracing all aspects of the capitalist market economy. The author fully agrees with the dictum of Böhm-Bawerk: "A theory of the trade cycle, if it is not to be mere botching, can only be written as the last chapter or the last chapter but one of a treatise dealing with all economic problems."

It is only with these reservations that the present writer presents this rough sketch to the members of the Committee.

I. The Unpopularity of Interest ...

II. The Two Classes of Credit ...

III. The Function of Prices, Wage Rates, and Interest Rates ...

IV. The Effects of Politically Lowered Interest Rates ...

V. The Inevitable Ending ...

....

Read more: mises.org