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?? Risk in the Credit Markets: An Austrian Economics Lens A few weeks ago, I had an enlightening conversation on the InFi podcast with Rachel Medlin, an economist and risk analyst, who brings the Austrian perspective into her daily work assessing credit market risk. It’s rare to find someone applying Austrian business cycle theory in real-world finance, so this discussion offers fresh insight for those interested in alternative economic frameworks. Here's a snapshot of what we discussed: 1?? Interest Rates and Risk Distortion: Rachel shared how the Fed's artificially low interest rates can obscure true risk, creating an environment where credit and investment flows into sectors that might not otherwise see such support. This manipulation, she argues, sets up malinvestment across the economy, especially in sectors like real estate and tech. 2?? Inflation Forecasting: Back in 2021, Rachel’s team went against the "transitory inflation" consensus, using Austrian insights on money supply and economic structure to predict sustained inflation. They were proven correct when inflation far exceeded expectations—a valuable reminder of Austrian economics' predictive power. 3?? Geopolitical Risks and Federal Spending: We also discussed how today’s increasing federal budget deficits and global tensions could drive inflationary pressures. Rachel argues that while supply shocks may impact sectors, sustainable inflation only occurs with supporting monetary and fiscal policy—another key insight from the Austrian school. ?? This episode dives deep into how Austrian theory can offer a framework for understanding both systemic and sector-specific risks, providing risk analysts and financial strategists an alternative lens for market analysis. Curious to learn how these principles apply to today’s volatile credit landscape? Watch the full episode here: https://hubs.li/Q02XzrTF0 #CreditMarkets #AustrianEconomics #Inflation #RiskManagement #InFi