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Deflation doesn't mean a thing about prices of goods relative to our labor and time. It speaks to the nominal relationship between units of currency and prices
by jbooth 12y ago
Deflation doesn't mean a thing about prices of goods relative to our labor and time. It speaks to the nominal relationship between units of currency and prices of goods, labor, and time. Goods and labor are on the same side of the equation, although labor's price moves a little more slowly.