Friday, December 14, 2012
Posted by dkuehn at 9:17 AM
"It is a popular fallacy to believe that perfect money should be neutral and endowed with unchanging purchasing power, and that the goal of monetary policy should he to realize this perfect money. It is easy to understand this idea as a reaction against the stiIl more popular postulates of the inflationists. But it is an excessive reaction, it is in itself confused and contradictory, and it has worked havoc because it was strengthened by an inveterate error inherent in the thought of many philosophers and economists."
Human Action, pg. 415
Just tracking a few random things down, so I'm not reading a lot of this. But he has some good stuff in here on money. I also like what he says next, and we can think about this in much broader terms than just money:
"These thinkers are misled by the widespread belief that a state of rest is more perfect than one of movement. Their idea of perfection implies that no more perfect state can be thought of and consequently that every change would impair it. The best that can be said of a motion is that it is directed toward the attainment of a state of perfection in which there is rest because every further movement would lead into a less perfect state."