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Should Central Banks Accommodate Increases in Demand for Money?


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One of the fallacies pushed by monetary economists is that a growing economy needs a growing supply of money in order to prevent deflation, which they claim is as harmful as inflation. However, as Austrians point out, there is no “optimum” amount of money in the economy, since prices adjust.

Original article: Should Central Banks Accommodate Increases in Demand for Money?

 

 

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Mises MediaBy Mises Institute