Monday, 19 May 2014

Hayek on The Fall in Prices ("Deflation") When The Quantity of Money Remains Unchanged

It would appear rather that the fall of prices proportionate to the increase in productivity, which necessarily follows when, the amount of money remaining the same, production increases, is not only entirely harmless but is in fact the only means of avoiding misdirections of production.
Friedrich Hayek, Prices and Production