3 ms·
> Serious question: Why must the money supply must expand? Wealth isn't fixed in supply, nor can the money supply be that we use to trade it without bad effect
by gnaritas 11y ago
> Serious question: Why must the money supply must expand?
Wealth isn't fixed in supply, nor can the money supply be that we use to trade it without bad effects on the economy. If wealth expands and money doesn't, price deflation hits; if wealth shrinks and money doesn't, price inflation hits. For stable pricing, money supply must fluctuate.