Cornerstone University Economics Professor Addresses Inflation’s “Cantillon Effect” at Mises Institute
Inflation and its lingering impact on families in the United States continues to dominate headlines amidst growing debates regarding economic policies that create inflation. On June 15, 2023, Jeffery Degner, assistant professor of economics at Cornerstone University, presented inflation’s “Cantillon Effect” to Mises Institute research fellows in Auburn, Ala. The prestigious Mises Institute is one of the world’s leading think tanks for the Austrian School of economics.
Specifically, Professor Degner framed how the central banks inflationary policies have impacted families in the United States. “The huge growth in the money supply since the 1970s has impacted patterns of marriage, fertility and divorce since that time,” Degner explained. “Due to what is known as the ‘Cantillon Effect’ some families benefit from inflation through increases in their wealth, while others see declines in their net worth.”
Cornerstone University’s School of Business & Innovation boldly features the Austrian tradition in its economics program and its compatibility with the university’s mission and values. “We are thankful for Professor Degner’s commitment to introducing our students to world-renowned economists and experts. Exposing our students to such significant individuals and information is essential to prepare them for the future. The Austrian tradition of Economics puts people first, reinforcing our values,” said Alexandria Baldrige, MBA, dean of the School of Business & Innovation.
In March 2022, Degner’s paper “Cantillon Effects and the ‘Coming Apart’ of the American Family Experience” was presented and won the top prize in the graduate paper category during the Austrian Economics Research Conference, sponsored by the Mises Institute. In it, Degner described how the Federal Reserve’s long-standing inflationary policy creates increased wealth inequality. The Austrian Economics Research Conference is an interdisciplinary gathering sponsored by the Mises Institute. Top scholars and graduate students from around the world who are studying economics in the Austrian tradition gather annually, including Cornerstone business students.
The Mises Institute’s leadership is deeply concerned with the consequences of inflation on culture and families. Degner’s research shows that those households that benefit from inflation “are much more likely to sustain traditional family life, while those who have been left behind through the Federal Reserve’s inflationary policies find it much more difficult to create or maintain a traditional household.”
A research fellow with the Mises Institute, Degner’s relationship directly benefits students inside and outside the classroom. For the past three years, Degner has sent students to Mises University, a week-long forum of lectures and opportunities to learn about the Austrian tradition of economics, extending the classroom work focused on its real-world principles.
Cornerstone’s School of Business & Innovation blends industry-respected business and economics essential foundations with a Christian worldview, challenging students to see the connectedness between their faith, economics, innovation, and leadership. Developing bold, influential leaders of character, business industry knowledge, critical thinking and data-informed solutions is central to its mission. For more information regarding Cornerstone’s 75-plus accredited programs including ACBSP-accredited business bachelor’s, master’s, and Ed.D. in organizational leadership & development, contact 616.222.1426.
