SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ilaine who wrote (106994)6/6/2001 7:03:35 PM
From: Don Lloyd  Read Replies (2) of 436258
 
CB -

...I'd like them to explain to me how an infinitely expanding economy can be tied to a finite amount of gold without either deflation or devaluation.

The Austrian theory says that any amount of any kind of money, including gold, is sufficient for any level of economic activity. It does NOT claim that the purchasing power of money will not change. If fact there is not only no possible monetary system that can stabilize the PPM, it is not possible to even measure it to any useful accuracy level.

mises.org

"...As Murray Rothbard succinctly put it in The Case Against the Fed:

The invariable result of an increase in the supply of a good is to lower its price. For all products, except money, such an increase is socially beneficial and living standards have increased in response to consumer demand. But an increase in the supply of money cannot relieve the scarcity of goods; all it does is to make the dollar or the franc cheaper, that is, lower its purchasing power in terms of all other goods and services. Hence the great truth of monetary theory emerges: once a commodity is in sufficient supply to be adopted as money, no further increase in its supply is needed. Any quantity of money is "optimal." Once a money is established, an increase in its supply confers no social benefit...."

Regards, Don
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News