OK.

Now, but that does not follow at all.

So my odd here does not follow at all from the is analysis.

You can very well arrive at a very different conclusion.

For example, you might say, well, I want to have minimum wage laws precisely because it brings about unemployment.

And that seems to be absurd.

But in fact, it is not that absurd because there are historical cases where we can identify political proposals that boil down exactly to such a position.

he published in 1907

brief.

Let me just start with a little observation on the empirical record since we're talking about the performance of financial intermediaries before so the empirical fact is that of all the investment funds quoted at the New York Stock Exchange if you take the average they performed worse than the average of the Dow Jones okay so if you invest your money with an investment fund, in average, you get a lower performance than if you just invest your money yourself.

There.

And if you do without the sophisticated techniques that they bring along.

We have a similar surprising result when we turn to deflation.

It is one of the most firmly held convictions among economists, and monetary economists in particular, that deflation is very bad and needs to be prevented at virtually any cost.

It's the basic rationale, one of the basic rationales underlying Keynesian macroeconomics, and it's one of the basic rationales underlying the prevailing monetary institutions, in particular the presence of a central bank, of paper money, the purpose of which is to fight deflations, prevent precisely situations in which we have either strongly falling price level and or strongly declining money supply, which has the consequence of a price level that is lower than it would otherwise have been.

All

It's

only in a fractional reserve system that the money supply in the larger sense is larger than the money supply in the narrow sense that is the total supply of gold.

So here we are talking then about the money supply in the larger sense, right, so money titles issued by fractional reserve banks included.

And so what we have then, ideally, what we would observe is that fractional reserve banking system expands, right, you have an expansion of the node issue, and then at some point you have a bank run, so the money supply plummets, okay, and One interesting question is, how far will it plummet? And it is clear that it can plummet no further than until it reaches the money supply in the narrow sense, because the bank notes can lose all their value, and they do lose all their value in a bank run, but the gold itself will not lose its value.

It is as soon as all the, or at latest, when all the bank notes have lost their value, Only the money in the narrow sense, that is the gold coins and so on, still exist.

And this is sort of the lower boundary of the money supply that will still be in existence.

So as soon as this money supply is reached, or let's say at latest, because there might be still some banks able to issue notes that are not affected by the crisis.

six.

with.

So it follows then that by the very nature of this principle, Every increase of the supply of a homogeneous good that I might have will lead to less important needs being satisfied.

Now we can express this in a curve such as this, or rather We would have discrete and concrete dots.

No continuous thing.

In the case of fish, I might subdivide it and so on.

If you're a good fish cutter.

So we have a very similar principle here.

on.

apart from all other schools that exist today.

So, in the Austrian school, then, we need to distinguish between, or it is useful to distinguish between a main line of Austrian economists and various side lines.

The main line of Austrian economists starts with Karl Menger, who lived during this period, 1840 to 1921, and extends through Eugen von Böhme-Bawerk.

And then extends through Mises.

So here we have our central figure.

Ludwig von Mises, 1883.

1973 and then to Murray Rothbard and his present day followers so if you're 1926 to 1995 After Rothberg, the main line is continued today mainly by scholars affiliated with the Ludwig von Mises Institute in Alabama in the United States.

Okay,

apparently, if you need your visa to be extended, just Mises knows a guy.

Mises is the guy who does it.

So with Steiner, he has this correspondence on immigration restrictions, the cause of World War II, on Judaism.

So it's a Jewish businessman and various other issues.

So I found this interesting.

There was a correspondence with a fellow Austrian, Leo Köppel, on Marx and literature related to Marx.

So it shows that, again, Mises had these wide ranging research and intellectual interests.

Is there anything else that you wanted to hit as we're starting to wrap up here?