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- Ideally, (dummy) money would be constant in exchange value.
- Scarcity is the normal cause of inflation
- The maladaptive cause of inflation is maladjustment of incomes as required by the current phase of the pure cycle of expansion
- The quantity of money infused by the Central Bank must be properly calibrated to serve the normative requirements of the actual magnitudes and frequencies of turnovers in the productive process
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Economists must carefully consider tiers of basic incomes and propensities to consume:
I’ = Σwiniyi (35) [CWL 15, 134] and
dI’ = Σ(widni + nidwi)yi (36) [CWL 15, 134].
- Also, Economists must carefully consider expansion in phases and the interpretation of its effect on the Basic Price-Spread Ratio. (CWL 15, 156-62):
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P/p = a’ + a”p”Q”/p’Q’ (CWL 15, 156-62) (45)
i.e., J = a’ + a”R (CWL 15, 156-62) (45)
so, dJ = da + a”dR + Rda” (CWL 15, 156-62) (47)
Note: The treatments of price changes in CWL 15 are mainly in 1) pp.75-80, 2) 128-44, and 3) 156-62.
Sequence of Contents
- Ideal and practical aspects of the economic process
- Ideally, money would be constant in exchange value
- The condition of constancy in exchange value
- Characteristics of dummy money in an exchange economy
- Promise and trust between two parties
- The dynamic structure of the productive process and classes of monetary flows
- But prices do change. The changes have causes and intelligibilities and the changes must be interpreted.
- Concomitance and intensity among flows
- Real analysis and the everyday use of money
- Price tendencies (prescinding from excess or deficient money supply)
- The first kind of cause of inflation – ordinary scarcity
- The second kind of cause of inflation – disproportion between monetary and real consumer income
- Misconceptions of professional economists as to interest rates and responsibilities
- Adjusting the rate of saving to the phase of the expansion
- Further re interpretation of price changes
- The basic price-spread ratio
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