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The same way, more or less, it works now. Base-money (in this case, paper dollar bills) isn't actually exchanged in international transactions; there is a complicated international system of clearing houses that handle them. Of course in a gold standard, gold would ultimately be transferred, but this is the mechanism that would prevent a perpetual
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It's a general monetarist rule that the money supply should increase by the same rate as output (relies on the classic monetarist assumption that velocity is either constant or stable). Output, in the U.S. at least, tends to grow at around 2-3%. The anti-thesis can be found in Hayek's Monetary Theory and the Trade Cycle (yields relative price
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A B.S. in economics hasn't done much for me. The stuff I learned in accounting turned out to be much more marketable in the labor market.
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Hell yeah, I love mojito's.
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Low quality items with relatively shorter life spans are cheaper. People tend to prefer cheap things, all other things equal. They will weigh the savings from buying the cheaper, 'crap' item and consider the cost associated with its shorter life span. They will reach their own conclusions (form their own value judgment) and proceed form there
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You know there's a problem when the author links Friedman to Hayek. [quote] Hayek, the leading laissez-fair economist of the 20th century and the godfather of neoclassical economics. Milton Friedman, who was at the University of Chicago with Hayek, was not far behind. He won the prize just two years later, in 1976. Both Hayek and Friedman were huge
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"We're all in this together"
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It's shocking how many people still don't understand what money is and what money is not.
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[quote] The answer I get is "how do you know? [/quote] The problem, of course, is that there aren't enough real resources available to finish those investments. In other words, you know that a malinvestment is a malinvetsment, ex post, because it cannot be completed at all or on time (or will be completed at the expense of a more warranted
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[quote] HOWEVER what they 'extract' from the working class -cash they impose on the working class- is 300% higher than the same amount (through fees, rents, costs, charges, and general cost of living) [/quote] Inflation is always and everywhere a monetary phenomena. On another note, would you like to meet up some time for coffee? I live near