-
My professor did not mention a decrease in money supply, only that the money supply was not increasing. From that, I assume that he was basing it on a tendency for nominal prices to go down. From what I've learned so far in economics, it should be normal for prices to go down because of increased efficiency and technology. That is why I'm so
-
I think the thing that confused me the most was the fact that he was trying to portray our money increasing in value as a bad thing. He used the example of the 1870's deflationary era to show how deflation was a bad thing. He stated that if there was a fixed money supply (gold standard) and the GDP rose, prices would drop because the dollar was
-
From the article "Anatomy of Deflation": "What wipes out profits and makes debt repayment more difficult is not falling prices but monetary contraction , i.e., the reduction in the quantity of money and or volume of spending in the economic system." So it sounds like deflation only results when consumers get spooked and do not want
-
I've been reading these forums for a few months now as I recently came to know about Austrian economics and have been fascinated by it. I am currently pursuing a BS in Economics and am taking some of the core economics classes. I've read 'Economics in One Lesson' and am currently struggling through Rothbard's 'Man, Economy, and