This is the book that some Austrian economists don't want you to read. It’s the calm before the storm. The next recession is coming, and the Austrians must be prepared. Since 2009, their forecasts of imminent collapse and hyperinflation have fallen on deaf ears, and for good reason. These predictions were premature and too short-sighted despite being based on a valid business cycle theory. Who’s to blame for the next crisis? The Federal Reserve? Fractional reserve banking? The typical Austrian answer is both. Each creates the scourge known as inflation, and this begins the boom and bust cycle. But something is missing from this broader Austrian perspective: kaleidics. Without appreciating the complex nature of money and how it can unleash a devastating deflationary rot on our economy, some free market economists are willing to throw the baby out with the bath water. This book aims to right these wrongs of the Austrian past by taking the best of the tradition and combining it with new and important insights. Aspiring scholars can use this original contribution to advance the Austrian school beyond what Mises and Rothbard had envisioned. In his debut book, Monetary Kaleidics, author Michael Hoffman explores questions including: Why the Austrian school has stagnated in the last decade and how it can recapture the prestige it had during the marginal revolution. How to profit from negative interest rates in the War on Cash with an alternative understanding of Gresham’s law. What entrenched wages are and why they matter in a free market. Why monetary disequilibrium theory is important to the future of the Austrian movement. How a local currency can help alleviate unemployment during a recession and enhance the price mechanism. Question everything. What we need is a new path. A different vision. The old doctrines have gotten us this far, but economics and money are not so easy to understand. This new contribution to the Austrian tradition will help you see through the money illusion into a complex world that’s in constant flux; just like a kaleidoscope. From the Back Cover Money is the lifeblood of a modern economy. It flows through each and every exchange. So when its circulation slows or stops altogether, the market goes into a deep state of shock. If the causes of such discoordination are not understood, the results can be devastating. Author Michael Hoffman explores how a medium of exchange, while vital for economic calculation, can cause severe distortions within the structure of production if it is not supplied organically. The pervasiveness of money is surpassed only by society's misunderstanding of its nature and role in economics. Monetary Kaleidics contains three sections:Part 1 explains different aspects of the trade cycle from the Austrian perspective, exploring the nuances of the relationship between wages and prices, including how they, in their roles as market signals, affect the intertemporal capital structure.Part 2 is an inquiry into the connection between money and banking, examining how the financial system can extend too much or too little credit, thus creating a phenomenon known as monetary disequilibrium.Part 3 considers the implications of the ideas from the first two parts on the future of monetary theory and the real economy. By fusing elements of different economic perspectives with new insights, this original contribution will guide the reader through the illusion of money into a complex world that's in constant flux--just like a kaleidoscope.