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I though that, from the Austrian perspective, the stock market would be one of the last things to see inflation. Are not suppose the prices of stocks reflect th
by RobertoG 7y ago
I though that, from the Austrian perspective, the stock market would be one of the last things to see inflation. Are not suppose the prices of stocks reflect the aggregate infinite wisdom of the market?
- ghastmaster 7y agoIf the money supply was increased across the board this would likely be the case. However, the FED bank no longer operates in the way it was statutorily mandated originally. The FED purchases assets that inflate the stock market indirectly. The Federal subsidies and regulations combine with this to keep the money propping up the assets mentioned(gold only because of it being a historic hedge).