This article was originally published by Philippe Lemieux at The Mises Institute. Modern economic life no longer unfolds within reality as it emerges from human action. It operates within a constructed order that substitutes itself for real processes. Governments do not engage with the economy as it is lived and experienced. They act upon abstractions that stand in for it. What is presented as analysis is in fact a replacement. Modern central banks often justify monetary policy decisions by targeting inflation indexes that no longer reflect the real cost of living experienced by individuals. While official statistics may report stable…
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