Introduction to Austrian Economic Analysis

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9. Money and Prices

  • Introduction to Austrian Economic Analysis

Tags Money and BanksAustrian Economics OverviewMoney and BankingPrices

06/22/2006Joseph T. Salerno

Barter – direct exchange- is inefficient because of the lack of a double coincidence of wants. Some third medium was sought to solve this. It is called money. Exchanges are not equal, they are win-win, with each party gaining more than he is giving or the exchange would not be made.

An increase in the supply of all commodities is good, except for money. Increases in the supply of money merely dilute the purchasing power of each remaining money unit.

The ninth of ten lectures from Joseph Salerno's Introduction to Austrian Economic Analysis seminar.


Contact Joseph T. Salerno

Joseph Salerno is academic vice president of the Mises Institute, professor emeritus of economics at Pace University, and editor of the Quarterly Journal of Austrian Economics.

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