Posted tagged ‘Money’

Does The Supply Of Money Have To Increase To Accommodate Increasing Production?

April 29, 2013
Monopoly Money

Monopoly Money (Photo credit: John-Morgan)

QUESTIONS CONCERNING MONEY.

I’ve had some questions recently that have to be addressed. 1) If production increases without a corresponding increase of money, would that not cause deflation? 2) If the currency is to be increased to correspond with the increase in production, how is it increased without theft? The simple answers to these two questions are yes to the first one, and, it can’t, to the second one, but that doesn’t help us understand the why’s and how’s.

UNDERSTANDING MONEY.

I wrote a post titled, “We’re All Born In The Middle Of The Story”, in which I quote Thomas Sowell who said, “results observed at a given point in time may be part of a process that stretches far back in time“. Understanding this quote should be our default position for everything we observe and analyze. When it comes to money we are all born in the middle of the story. What do I mean by that? (more…)