Nah, not that. New supply is necessary to maintain price stability in a growing economy. If you stop adding supply you get a deflationary spiral. Similarly the

Nah, not that. New supply is necessary to maintain price stability in a growing economy. If you stop adding supply you get a deflationary spiral. Similarly the ability to contract supply is necessary to maintain stability in a contracting economy. Honestly even Austrians generally agree with that statement. Their theory is inflation is a result of increasing supply in excess of productivity and that it shouldn't under any circumstances be measured. Which is stilly and rejected in favor of actually measuring price change, but I digress. The theory you're espousing there, the 'cantillon effect' has to my knowledge never once been quantified. Nobody seems to have any idea to what extent it actually exists, and if it exists, what the magnitude of its impact is. If you have a peer-reviewed study I'd love to see it but I sure haven't found one.