A Reply to Shostak: Can Increases in the Gold Supply Cause a Business Cycle?

Mises Institute

In replying to a previous article by Frank Shostak, Douglas French writes that if an increase in the supply of gold ultimately leads to an expansion of bank credit, that is enough to start the boom-and-bust cycles, even if there is no central bank to accelerate the process. Narrated by Millian Quinteros.