Thus said Von Grant Fugal on Fri, 05 Dec 2008 10:21:01 MST:
> Price inflation IS monetary inflation. The only other way to get price
> inflation is with severe economic downturn. That is to say, a
> pronounced decrease in production, in wealth.
Keep it up, you're starting to sound more Austrian all the time! As
Rothbard put it:
To put it another way: a continuing, sustained inflation--that is,
a persistent rise in overall prices--can either be the result of a
persistent, continuing fall in the supply of most or all goods and
services, or of a continuing rise in the supply of money. Since we
know that in today's world the supply of most goods and services
rises rather than falls each year, and since we know, also, that
the money supply keeps rising substantially every year, then it
should be crystal clear that increases in the supply of money, not
any sort of problems from the supply side, are the fundamental
cause of our chronic and accelerating problem of inflation.
> I'll be more specific. Is it a staple of austrian economics that
> inflation is good?
If you read the links I sent earlier, you will hear a resounding NO.
Andy
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