Wednesday, 4 July 2012

It is possible that people will not want fiat money

People talk about inflation when what they really mean is the price of money... it is possible for the price of something to change even when the quantity remains the same. It is possible for the demand to alter. It is possible for the demand for fiat money to fall. Price is only synonymous with inflation if the demand for fiat money is constant... which it doesn't need to be.

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