Inflation and the Economy

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Inflation and the Economy

WHY UNDER MONETARY FREEDOM INFLATION COULD BE STOPPED WITHOUT BRINGING ABOUT UNEMPLOYMENT

1. Unemployment and inflation do coexist and inflation causes much unemployment which would cease with it.

2. Excessively inflated prices would fall to market prices and so promote sales

and employment.

3. Less government spending would mean more private spending.

4. Prices and wages could be adjusted fast. If this is not done then this is not

the effect of stopping inflation!

5. Price adjustments through gold-value clearing could take place already during

a continuing paper money inflation - leaving no adjustment problem.

6. While FALLING prices do indeed deter from buying and promote unemployment,

FALLEN prices do the contrary. Under monetary freedom there would only be FALLEN prices.

7. The un- or under-used productive capital investment would, under monetary

freedom, be almost fully used and would thus ensure that there arises or remains

no unemployment.

8. Under monetary freedom there would also be no difficulty to mobilize fully

the real working capital of any country: the goods and services ready for retail

sale and to finance with them full employment - naturally at market wages and

prices.

9. Monetary freedom would allow all desired exchanges to take place and would

put Say's Law, that supply tends to create equivalent demand, into practice. No

sales difficulties or unemployment would result.

10.Unemployment is an unnatural condition: Under monetary freedom it would no

more occur than under barter.

TEN WAYS HOW, INDEED, WRONG ATTEMPTS TO STOP INFLATION COULD LEAD TO UNEMPLOYMENT - UNDER CONTINUED MONETARY DESPOTISM.

1. Stopping the note ...

... middle of paper ...

...s of the free banking literature.

17. A critique of the note issue monopoly.

Sorry, but 15-17 are not yet out, either. On the other hand, LMP has fiched

hundreds of monetary freedom titles, including a 124pp free banking

bibliography.

A handbook on monetary freedom and one dealing especially with cause and cure

for unemployment are still in the works by February 1999.

John Zube, 11. 2. 1999.

Note: I merely scanned this text in and afterward somewhat corrected the

scanning and did minor editing. The scanning may still have left some mistakes I

did not notice, apart from my own and usual ones. The Word 97 program sometimes

insists upon its own layout and stubbornly resists my correction attempts.

Somewhat corrected and edited on 26.6.1999 & 2.7.99.

Bibliography:

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