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Money and Banks
When prices fall as a result of rising wealth that's good news. But deflation is also good news when it follows the bursting of a financial bubble caused by money creation.
From the point of view of present-day standard macroeconomics, monetary history is a succession of technical changes to facilitate an increasingly large inflation of the money supply.
In one recent thread, Weisenthal mocked the people worried about the falling purchasing power of the US dollar, and claimed that it would be immoral for currency to maintain its value over time.
According to the Marxists and their fellow travelers, inflation is good because it transfers wealth from creditors to debtors, and debtors are "the 99 percent." But inflation doesn't work that way.
The fact that various electronic money transfers are taking place does not mean that we do not require cash any longer. On the contrary, the fact that the cash exists enables those transfers to take place.
Contrary to popular thinking, there is no such thing as a price level that should be stabilized by the central bank in order to promote economic prosperity.
After thirteen years with on average negative real returns to conservative savings, it is time to require the Federal Reserve to address its impact on savers.
The Nigerian central bank uses all the same tools as other central banks. And it uses them a lot.
Asset price inflation is the process by which "irrational" speculation in asset markets is spurred by monetary inflation. This can occur even without any accompanying goods price inflation.
In an age of growing productivity and technological advancement, goods would be getting cheaper every year. This is a reason why price inflation rises more slowly than money supply inflation.