There is a myth in mainstream economics that stable prices are necessary for the economy. The idea of price stability became popular in the 1920s, during a period known as the Roaring Twenties.

I recently talked to a friend who questioned the importance of inflation. He mentioned that inflation could be helpful in the event of a major crisis. He specifically talked about natural disasters.

Over 70 years ago, economist F. A. Hayek published his book “The Road to Serfdom” in which he warned the world of the dangers of centralization and planned economies. Today, I revisit some of his warnings.