“There is no justification whatever for the widespread belief that variations in the quantity of money must lead to inversely proportionate variations in the objective exchange-value of money, so that, for example, a doubling of the quantity of money must lead to a halving of the purchasing power of money.”
— The Theory of Money and Credit (LvMI) by Ludwig von Mises
https://a.co/bfU0xeM
Up to this point I was understanding what Mises was explaining. But this quote seems to say that an increase in the quantity of money does NOT decrease purchasing power. If I’m understanding this correctly this would be completely contradictory to what I’ve come to understand through my dillegent research.
saifedean (npub1gdu…6nak) could you shed some scholarly light on this concept please. I really would appreciate your thoughts on this.
jon
npub1wt…cjjv2
2024-05-20 18:05:03
Author Public Key
npub1wtfnlhvhvm90lgsgyd6cu82tj3v429y7qkuu54srwzxpefppc2zq3cjjv2Published at
2024-05-20 18:05:03Event JSON
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"pubkey": "72d33fdd9766caffa20823758e1d4b945955149e05b9ca5603708c1ca421c284",
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"content": "“There is no justification whatever for the widespread belief that variations in the quantity of money must lead to inversely proportionate variations in the objective exchange-value of money, so that, for example, a doubling of the quantity of money must lead to a halving of the purchasing power of money.”\n\n— The Theory of Money and Credit (LvMI) by Ludwig von Mises\nhttps://a.co/bfU0xeM\n\nUp to this point I was understanding what Mises was explaining. But this quote seems to say that an increase in the quantity of money does NOT decrease purchasing power. If I’m understanding this correctly this would be completely contradictory to what I’ve come to understand through my dillegent research. \n\nnostr:npub1gdu7w6l6w65qhrdeaf6eyywepwe7v7ezqtugsrxy7hl7ypjsvxksd76nak could you shed some scholarly light on this concept please. I really would appreciate your thoughts on this.",
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}