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About this quote

What does it mean?
Hayek states history is largely driven by government-engineered inflation for state gain.
In plain terms
History shows governments often create inflation to benefit themselves.
What can you take from it?
Inflation is often a tool used by governments for their own gain.

Where it applies

  • economic analysis
  • policy critique
  • historical review

Putting it to work

  • track monetary policy
  • audit inflation causes

Questions to consider

  • Who benefits from inflation?
  • How does policy shape history?

Another view

Inflation can sometimes stimulate growth.

More from Friedrich Hayek

  1. From the saintly and single-minded idealist to the fanatic is often but a step.

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  2. In government, the scum rises to the top.

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  3. From the fact that people are very different it follows that, if we treat them equally, the result must be inequality in their actual position, and that the on…

    Permalink to quote #140

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