| > price inflation is a signal of monetary inflation No, you don't need monetary inflation to have inflation. > malinvestment is not productive, in fact it is destructive. Sure, but investment to supply additional capacity isn't malinvestment, by definition. > no one said you need monetary policy for the money supply to increase. > now consider what happens if a counterfeiter creates a bunch of fake dollars and spends them. people see the influx of cash, interpret it as effective demand, and invest in capital goods. Oh, now I see, you're talking about the very particular case of inflation caused exclusively by bad monetary policy, and then extrapolating that to all inflation. Inflation caused by bad monetary policy is indeed bad, but that's only one particular case of inflation. Your argument is essentially "sulfuric acid is bad for society, because in some cases sulfuric acid can do a lot of damage if misused". Indeed, if misused it can do a lot of damage, but that applies to anything. > reading a basic macroeconomics textbook would do wonders for your perspective. Indeed, maybe you should give it a try! |
yes, the textbook case.
> Indeed, maybe you should give it a try!
indeed I have and thats how I know you're either ignorant or engaging in sophistry. good day.