Anatomy of the Crash: the financial crisis of 2020
Edited by Tho Bishop
Introduction by Jeff Deist
Mises Institute - Auburn, Alabama, 2020
The Great Crash of 2020 was not caused by a virus. It was precipitated by the virus, and made worse by the crazed decision of governments around the world to shut down business and travel. But it was caused by economic fragility.
The purpose of this collection is to highlight the important work of contemporary Austrian economists on the modern financial system. Although the mainstream financial press has been crediting American, European, and Chinese policymakers with upholding the global economy in the aftermath of 2008, Austrians have long been warning that these very same actions have only set the world up for a larger disaster. Promises in 2008 of the ease of normalizing monetary policy—such as by reducing balance sheets and phasing out market intervention—have been proven to be lies, just as Austrians warned.
Published 2020 by the Mises Institute. This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 International License.
Contents
Preface by Tho Bishop, 7
Introduction by Jeff Deist , 11
Understanding The Current Crisis, 17
1. Financialization: Why the Financial Sector Now
Rules the Global Economy by Ryan McMaken , 19
2. Are Central Banks Nationalizing the Economy
by Daniel Lacalle , 33
3. The Menace of Sub-Zero Interest Rate Policy
by Brendan Brown , 39
4. Central Banks’ Crusade Against Risk
by Thorsten Polleit , 43
5. The Ghosts of Failed Banks Have Returned
by Alasdair Macleod , 49
6. 7 Reasons Why European Banks Are in Trouble
by Philipp Bagus , 63
7. China Is in Trouble
by Ronald-Peter Stöferle and Mark J. Valek , 67
What Central Banks May Do Next , 75
8. How a Fragile Euro May Not Survive
the Next Crisis by Brendan Brown , 77
9. Not-So-Modern Monetary Theory by Arkadiusz Sieroń, 83
10. Central Banks Are Propping Up Stock Prices
by Thorsten Polleit , 87
11. Will the Drive to Devalue the Dollar Lead
to a Plaza Accord 2.0? by Ronald-Peter Stöferle , 93
12. Negative Interest Rates are the Price We Pay for
De-Civilization by Jeff Deist , 103
13. What Will It Take to Get the Public to Embrace
Sound Money? by Brendan Brown , 107
14. Yes, the Fed Really Is Holding Down
Interest Rates by Joseph T. Salerno , 113
15. Why the Government Hates Cash
by Joseph T. Salerno , 127
The Failed Economics of “Neoliberalism” . . 133
16. What’s the Difference Between Liberalism
and Neoliberalism by Ryan McMaken , 135
17. How Today’s Central Bankers Threaten
Civilization by Claudio Grass , 141
18. What Would Mises Think about the West
Today? by Jeff Deist , 147
19. Mises and the “New Economics” by Jeff Deist , 157
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