Inflation and the Economy Essay

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Inflation and the Economy WHY UNDER MONETARY FREEDOM INFLATION COULD BE STOPPED WITHOUT BRINGING ABOUT UNEMPLOYMENT 1. Unemployment and inflation do coexist and inflation causes much unemployment which would cease with it. 2. Excessively inflated prices would fall to market prices and so promote sales and employment. 3. Less government spending would mean more private spending. 4. Prices and wages could be adjusted fast. If this is not done then this is not the effect of stopping inflation! 5. Price adjustments through gold-value clearing could take place already during a continuing paper money inflation - leaving no adjustment problem. 6. While FALLING prices do indeed deter from buying and promote…show more content…
2. Paying men not to work (unemployment "insurance"). 3. Deflationary withdrawal of notes from circulation - while free banking remains suppressed. 4. Replacing the old currency at an arbitrary rate, not the free market rate, and most likely supplying not enough new currency because under monetary despotism there is no yardstick like the free market rate for currencies. 5. Continuing monetary despotism with all its uncertainties and the expectation of further inflation. 6. Tax increases and their stricter collection - with their deflationary effects. 7. Delays in spending of tax-collected funds after the official currency "reform". 8. Issuance of a new "reformed" currency in quotas only. 9. Insistence on gold payments or gold redemption - regardless of the availability of gold and existing or possible alternative private contractual arrangements, i.e.: part redemption (revival J.Z., 1999) of monetary despotism in the form of an exclusive gold standard. 10.Issuance of the new currency only to the extent that foreign loans are available as "backing". I have no doubt that there are more right ways and that many more mistakes could be listed. This listing was only made to throw some doubts on unchecked premises, official announcements and "expert" views on the subject, including e.g. those of Milton Friedman, F.A. Hayek, Murray Rothbard and Mark Tier. The essence of my case is contained in the above
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