http://libertarianpapers.org/articles/2010/lp-2-43.pdf
This is a very interesting paper.
I would recommend you to read this.
Summary -
Creation of new reserves per se tells us little about whether banks will increase their lending
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Ludwig von Mises said -
"There is no means of avoiding the final collapse of a boom brought about my credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion , or later as a final and total catastrophe of the currency system involved."
So deflation now and hyper inflation may be later ( in the next Kondratieff Cycle).
This is a very interesting paper.
I would recommend you to read this.
Summary -
Creation of new reserves per se tells us little about whether banks will increase their lending
-----------
Ludwig von Mises said -
"There is no means of avoiding the final collapse of a boom brought about my credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion , or later as a final and total catastrophe of the currency system involved."
So deflation now and hyper inflation may be later ( in the next Kondratieff Cycle).
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