Return to Inflation

You have heard economists say that they are puzzled by the nature of today's problem: they are unable to understand why inflation is accompanied by recession—which is contrary to their Keynesian doctrines; and they have coined a ridiculous name for it: "stagflation." Their theories ignore the fact that money can function only so long as it represents actual goods—and that at a certain stage of inflating the money supply, the government begins to consume a nation's investment capital, thus making production impossible.

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