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To: Toddsterpatriot
There is a difference between falling prices, because of increased productivity and innovation......and falling prices because the economy is being starved of money.

Yes!

But the economy can only be "starved" for money when it has previously been fed too much by the government which suddenly yanked it away. A free market in money would adapt to changes in its supply just as it adapts to changes in the amount of oil available or the number of tomatoes available for sale.

19 posted on 04/03/2014 4:07:52 PM PDT by BfloGuy ( Even the opponents of Socialism are dominated by socialist ideas.)
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To: BfloGuy
But the economy can only be "starved" for money when it has previously been fed too much by the government which suddenly yanked it away.

Of course that's not true at all. What if the previous supply was just right, and then doesn't keep up with growth. That would result in deflation as well.

A free market in money would adapt to changes in its supply

Right. By dropping prices, reducing employment and reducing production. Increased defaults, reduced borrowing and less new business creation.

22 posted on 04/03/2014 6:29:56 PM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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