4 ms·
The money supply is not observable. Prices are observable. People care about price stability not about stability of the money supply.
by lottin 4y ago
The money supply is not observable. Prices are observable. People care about price stability not about stability of the money supply.
- nfin 4y agoprice stability has it own set of problems. If a good was regulated to have a stable price nobody would be incentivized to find a clever solution to solve a future crisis with high demand for that good
- lottin 4y agoPrice stability refers to the stability of the price level. It has nothing to do with changes in individual prices which are unrelated to changes in the price level.