Re:Mexican billionaire Salinas says his banking business may...
by JumpCrisscross on Monday June 28, 2021 @07:52AM
(#27660659)
> If the money supply was fixed, there couldn't be such inflation
Historically inaccurate. If the economic base vanishes, inflation—even hyperinflation—will manifest. Fixed quantity is no panacea.
What matters is the ratio between money supply and the economy. This is why, when the industrial revolution switched humanity from stable state/near-zero growth to positive-growth mode, we matured past the gold standard, first to bimetallism and finally to fiat.
Historically inaccurate. If the economic base vanishes, inflation—even hyperinflation—will manifest. Fixed quantity is no panacea.
What matters is the ratio between money supply and the economy. This is why, when the industrial revolution switched humanity from stable state/near-zero growth to positive-growth mode, we matured past the gold standard, first to bimetallism and finally to fiat.