Tuesday, October 30, 2012

Ludwig von Mises about inflation


Look at the silly term "inflationary pressures." There is no such thing as an "inflationary pressure." There is inflation or there is the absence of inflation. If there is no increase in the quantity of money and if there is no credit expansion, the average height of prices and wages will by and large remain unchanged. But if the quantity of money and credit is increased, prices and wages must rise, whatever the government may decree. If there is no inflation, price control is superfluous. If there is inflation, price control is a sham, a hopeless venture.

--Ludwig von Mises. Inflation: An Unworkable Fiscal Policy

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