Prices and the Demand for Money
6 Pages Posted: 12 Aug 2011
Date Written: August 11, 2011
This paper is a short argument as to why the macroeconomic theory of monetary disequilibrium is untenable and why free bankers should shed it from their theoretical arsenal. Monetary equilibrium cannot achieve price stabilization, nor is deflation resulting from an excess demand for money harmful. These should not be considered macroeconomic goals or advantages of a free banking system.
Keywords: monetary disequilibrium, money demand
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