From America's Great Depression — surrounding passage

Study of business cycles must be based upon a satisfactory cycle

“The natural law is, in essence, a profoundly 'radical' ethic, for it holds the existing status quo, which might grossly violate natural law, up to the unsparing and unyielding light of reason.”

In defense of the Mises “anti-bank” position, we must first point out that the natural interest rate or “profit rate” does not suddenly increase because of vague improvements in “investment opportunities.” The natural rate increases because time preferences increase. 36 But how can banks force market interest rates below the free-market rates? Only by expanding their credit!