Reading Bastiat's What Is Money?, I have a question:
Although I'm philosophically against intrusion in the free market by government, I was curious to see your responses to this inquiry as I am new to economic theory.
The trouble with printing money, so it seems, is that the more that is produced, the less value it holds. As I see it, this is specifically due to inflation. The entire idea behind QE3 is that people will spend more money, and in doing so, the economy will be stimulated. I understand Bastiat's approach to this via the Broken Window Fallacy, but considering the option that the government could require prices to stay the same, what exactly would happen? Would printing money actually increase wealth so long as inflation was capped and controlled?
Print money, everyone has lots of dollars.
Price fixed.
Everyone buys shit.
No more supply.
Starvation everywhere.
“Since people are concerned that ‘X’ will not be provided, ‘X’ will naturally be provided by those who are concerned by its absence.""The sweetest of minds can harbor the harshest of men.”
http://voluntaryistreader.wordpress.org