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> In fact, whenever someone purchases or sells something, there are two objects being exchanged. One is a currency and the other being the object of sale. Suppl
by __blockcipher__ 5y ago
> In fact, whenever someone purchases or sells something, there are two objects being exchanged. One is a currency and the other being the object of sale. Supply and demand for the currency affects the price just as much as supply and demand for the thing being sold.
This philosophy of viewing currency itself as subject to supply/demand is literally one of the insights that led to Friedman’s philosophy. For example see the Great Depression where an insufficient supply of money was one of the primary factors.
(See https://en.m.wikipedia.org/wiki/Causes_of_the_Great_Depression#Monetarist https://en.m.wikipedia.org/wiki/Causes_of_the_Great_Depressi...)