Front Matter

How to

Think about the

Economy

How to

Think about the

Economy

A Primer

PER L. BYLUND

MI S E SIN S T I T U T E

AUBURN, ALABAMA

Th e Mises Institute dedicates this volume to all of its generous

Supporters and wishes to thank these in particular:

Benefactors

Anonymous, Mr. Ben Davenport, Mr. James P. McMahon

Gregory and Joy Morin, Mr. Akihiko Murai, in Honor of Satoshi Nakamoto

Everett and Kathy Nelson, Mr. William C. Newton, Centro Salinas Pliego

Mr. Eric R. Schwarz, Mr. and Mrs. Gary J. Turpanjian

Mr. and Mrs. Roe Young

Patrons

Mr. Abdelhamid Abdou

Mr. J. Terry Anderson, Mr. Dimitrios Andreou, Bob and Rita Bost

Mr. Matthew Bowler, Mr. Glenn D. Boyer, in Honor of God

Mr. David Capshaw, Mr. Andrew W. Cleveland III, Dr. Ernest N. Curtis

Robert and Amyrillis Davis, Mr. Remy Demarest

Mr. and Mrs. Jason Dreyzehner, Mr. and Mrs. Joe D. Edge

Mr. Th omas J. Fitzsimmons, T.J. and Ida Goss

Juliana and Hunter Hastings, Mr. Charles T. Hatch, Mr. Paul Haugen

Mr. R. Anderson Hord III, Dr. and Mrs. Steve Hryszczuk

Mr. Aron D. Huddleston

In Honor of Lew Rockwell

Bernard and Joan Koether, in Memory of George F. Koether

Mr. Karl Krutsch, Hunter Lewis and Elizabeth Sidamon-Eristoff

Mrs. Laurie Lyford, Mr. Matthew McAndrews

Mr. Joseph Edward Paul Melville, Mr. and Mrs. Fritz von Mering

Mr. Zoran Mitrovski, Mr. James Nardulli, Mr. Jan Niessen, Mr. Paul F. Peppard

Drs. Th omas W. and Leonora B. Phillips, Plus Minus, Inc.Mr. Jeff rey S. Skinner, in Honor of Elan and Ella Skinner

Mr. Murry K. Stegelmann, Mr. David B. Stern, Mr. Rick Teller, top dog™

Dr. Th omas L. Wenck, Mr. and Mrs. Michael Whelen

Mr. Joseph Withrow, in Honor of Madison Lynn and Isaiah Joseph

Mr. and Mrs. Walter F. Woodul III, Mr. Daniel Yi

Donors

Mr. Larry Abrams, Mr. Sumeet Adur, Dr. Th omas T. Amlie, Anonymous

Mr. Scott Banfi eld, Mr. Th eodore Barnett, Dr. John Bartel

Rev. and Mrs. Larry Beane, Mr. Shaun Bradley, Dr. Nathan Brady

Mr. Bryan Lee Briggs, Mr. Dennis P. Bruyere, Mr. Dennis M. Campbell

Mr. Lee M. Carey, Mr. Mark Carroll, Mike B. and Lorie R. Carstensen

Mr. Jonathan Coe, Mr. Michael Collins, Mr. Justin Costley

Mr. Jim Courter, in Memory of Joseph A. Courter, Sr.

Th e Hendricks-Cox Foundation

Mr. Carl S. Creager, Mr. Ján Ďaďo, Charles W. Dean, MD

Mr. David Deforest, Mr. and Mrs. Dan Derby, III, John Galt

Mr. G. Paul Didier, Mr. Paul J. Dietrich

Mr. Randall Dollahon, in Memory of Kathleen Lacey

Mr. Bryan Elliott, in Honor of Claire and Maura Elliott

Mr. Steven G. Farrall, Mr. Peter Francis Fenwick, Col. James Finger

Willard and Donna Fischer, Mr. David Fligel

Mr. Bo Fredricsson, in Memory of Murray Rothbard

Mr. and Mrs. David Fusato, Mr. Steve Gamble, Mr. Christopher Georgacas

Dr. Elizabeth Gesenhues, Mr. Gary Halpin, Mr. Charles F. Hanes

Mr. and Mrs. Jeff rey Harding, Mr. Charles Howard HartmanMr. Jeff Hattem, in Honor of Per Bylund, Mr. Sheldon Hayer

Mr. William N. Haynes, Mr. Michael Heil, Sassan S. Hejazi, PhD

Dr. Frederic H. Herman, Mr. Nathan Hines

Mr. and Mrs. Allen D. Houtz, in Honor of Micah L. Houtz

Dr. Stefan Hubrich, Mr. Jeff rey J. Jean

Mr. Quest Jelinek, in Honor of Chris Jelinek

Mr. Dan Johnson and Ms. Randee Laskewitz, Mr. Wesley Johnson

Mr. Franklin Keller, Dr. Matthias G. Kelm

Mr. Tam Kemabonta, in Honor of Abiye Geoff rey

Mr. and Mrs. James E. Klingler, Mr. Alexandros Konstantinidis

Mr. Lawrence Lahusen, Mr. Stephan Livera, Mr. Donald Lovelace

Douglas J. Mackenzie, MD, in Memory of Joseph R. Mackenzie

Mr. Bruce S. Markel III

Dr. and Mrs. Charles W. Martin, in Honor of our grandsons:

Tom III, Will, and Henry Strandwitz

Mr. Ralph Martins, Mr. and Mrs. Joseph Matarese, Mr. Chester McKinney, Jr.Mr. Lonnie McQuirter, Mr. Kevin Menard, Mr. Mauro Miranda, CFA, FRM

Mr. Brian Moore, Dr. Lyle E. Muller, Mr. Gary J. Myre, Mr. Ernest L. Ortiz

Mr. Andrew Packer, Mr. Michael Page, Mr. Scott M. Parks, Mr. Brian Paulsen

Mr. Steven Potter, Mr. Joel Price, Mr. T. James Reynolds

Mr. Scott Richardson, Ms. Joan Riemer, Mr. Jorge F. Roca Arteta

Mr. Patrick Rosenwald, in Honor of Sofi a Rosenwald

Mr. Th omas S. Ross, Mr. Gabe L. Royer

Mr. Timothy Rozmajzl, in Memory of R. Nelson Nash

Dr. Murray Sabrin, Mr. Keith Sarbaugh, David and Elaine Sarosi

Mr. William P. Sarubbi, Mr. William Schnuckel, Mr. Kenneth L. Schweitzer

Mr. Stephen C. Sebastian, Dr. Prakash Seshadri

Mr. Jack Seward, Jr., Mr. Brian Sharpe

Dr. and Mrs. Paul L. Shetler, in Memory of Captain Martin Greene, US Army

Mrs. Lorraine Smith, in Memory of Geoff rey Stansfi eld

Dr. and Mrs. G. Keith Smith, Mr. Jay L. Smith, Mr. Craig Stasi

Mr. Richard L. Stees, Mr. Edward Stikeleather, Mr. Byron L. Stoeser

Mr. Emanuel Mark Strategos, Mr. Timothy Streid

Drs. Benjamin and Rosanne Th urman, Mr. Gregory James TisdaleMr. Peter Towers, Mr. Th omas E. Verkuilen, Dr. James H. Vernier

Mr. Reginald Victoria, Mr. Joe Vierra, Th e Villers Family

Mr. Mark Walker, Mr. C. David Walker

Mr. Skippy Weil, in Memory of Martin Luther King

Mr. Donald G. Weiss, in Memory of Richard Ogden Weiss

Mr. Matt Wesley, Mr. Bryant Williams, Mr. Jerry K. Williams

Richard and Susan Williams, Kirby and Andra Wisian

Malcolm and Gerlinde Wittig, Mr. William B. Zieburtz, Jr.