3 ms·
Usually, destroying some of the supply, but holding the flow of money fixed, means that the remaining items will be bid up. If instead prices are falling, it m
by Eliezer 6y ago
Usually, destroying some of the supply, but holding the flow of money fixed, means that the remaining items will be bid up. If instead prices are falling, it means that the secondary financial effects of the real shock are exceeding the impact of the real shock itself. If the flow of money is slowing down, one should create more money to avoid worsening the real shock through financial reverberations.
- monetaryvirus 6y agoIf there are actual, viable ventures right now, given the new conditions, then their lenders' investment probably doesn't hinge on whether the Fed is slightly more lose with credit than the ultra-loose policy it's had for the past year.