Mises Daily

How Money Disappears in a Fractional-Reserve Money System

December 2, 2015
Fractional-reserve banking systems create money out of thin air, and this causes malinvestments into less valuable and less productive activities. Eventually, banks realize there's trouble ahead, so they cut back on loans which leads to deflation and crisis...

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Can the US Dollar Face Down the Chinese Yuan?

December 1, 2015
The continuing power of the US dollar was called into question this week as the International Monetary Fund added the Chinese yuan as a part of the IMF's "currency" known as Special Drawing Rights. What does this mean for the US and China?

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