Autor/Autorin: Rhouma Loussaief
Loussaief Rhouma is a doctor of philosophy, teacher and researcher in social sciences, political philosophy and anthropology, translator and educational coach, interested in orthodox theories of political economy, the Stoics and Socratic method, or pedagogy (maieutics)...
The whole of today's global economic order is governed by a financial and monetary system that determines financial policy, the value of currency and fiat money, and the value of production. This financial system, managed by lenders and bankers, operates through indebtedness, bank loans and speculation. This system's panacea for all crises is always inflationary practices. Inflation implies an increase in the circulating money supply and a rise in prices. The printing of fiat money resulting from the increase in the money supply implies a deterioration in the value of money, and the rise in prices implies a fall in consumption and a decline in investment.Inflation makes money, which is a tool for the exchange of products whose value must be reliable and invariable, shaky and fluctuating, incomes fall and people lose confidence in an economic order that is supposed to be objective and indefectible. The degradation of monetary value as a result of inflationary measures is the absolute vice that monetary policy commits against market order and trade.