News for hackers. Stuff that matters.

A comment on In Fed and Out, Many Now Think Inflation Helps. Parent comment

Re:In Fed and Out, Many Now Think Inflation Helps by nhaehnle on Monday October 28, 2013 @05:35AM (#6625974)
> In a free market prices generally fall.

[citation needed]

[ Parent | on HN ]
Re:In Fed and Out, Many Now Think Inflation Helps by logicchains on Monday October 28, 2013 @06:40AM (#6626196)
If you have X amount of money and Y goods/service, the ratio of money per unit of good/service is X/Y. Economic growth increases the amount of goods/services provided; tractors dig more holes than shovels, and so on. This means Y increases, and thus X/Y must decrease: the cost per unit of good/service decreases.
[ Parent | on HN ]