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I totally agree with you. Inflation as price increase and inflation as money supply increase are different things. I also agree on malinvestment potential. I once read something like this: "If a person gets more money than he/she can spend wisely, he/she tends to spend unwisely."
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When I had a Development Economics class during my Business Management BA here in Brazil, it sounded to me like a recipe for economical development. It sounded to me like a plan. It sounded to me like "planned economy"... as far as I'm concerned Austrians reject planned economies... There's still something I never quite understood
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Please correct me if I'm wrong: it seems to me that the Austrians agree that an "inflation" of money supply necessarily makes monetary prices of goods higher than they would be without the "extra" money, which doesn't mean that prices will increase or decrease as of in a causal relation.