frphank's avatar
frphank 1 week ago
> >The amounts of goods and services offered will vary. If a fixed amount of money chases a varying amount of goods and services the price paid for each good or service will have to vary > I really don't see why this is concerning to be honest. Can you maybe provide an example? I feel this is somewhat of a crucial point for your argumentation and I don't see how it's so important, thanks Why are stable prices important? So you can plan financially? > Would you say that, hypothetically, if we were on a gold standard and, for whatever reason, no more gold were to be found for many decades, then the markets would have a hard time doing their thing? Yes. We'd have deflation and that'll trigger a massive recession.

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frphank's avatar
frphank 1 week ago
Changing money supply, not necessarily increasing. If the economy grows (as it usually does, that's what we want) the supply needs to increase. But economies can also shrink and then the money supply needs to shrink. During COVID the economy shrank but central banks did the wrong thing and still increased the supply and prices getting all out of whack for a while was the result. In any case go ahead try to find your magic la-la land with stable prices and a fixed supply. I'm not keeping you. If you fail to find it you can still pull a @semisol and call your customers "wet wipes". It won't help but you'll feel good for like a minute.