Sunday, January 9, 2011
Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output. ... A steady rate of monetary growth at a moderate level can provide a framework under which a country can have little inflation and much growth. It will not produce perfect stability; it will not produce heaven on earth; but it can make an important contribution to a stable economic society.
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I agree on this theory because we can see a live example in USA and how the money is devalued because the federal reserve is printing large amounts of money and just puts it in the country, which devalues the currency, which makes prices for goods and services higher, while regular people are not getting raises in their salaries, which makes their purchase power decrease, and if this keeps on going likes this people will not be able to live, and the unemployment rate increases because business owners do not want high expenses so they will fire people, and because most owners think like this many people will be unemployed, this will lead to something worse than the great depression
ReplyDeleteI Agree on this theory as well, so many american citizens are getting unemployed because they are not able to increase the purchasing power the firm owners or managers desire. and if the the economy would continue like this, then yes this will lead to something like a great depression
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