[centimeter]

This line of argument also suffers from the Keynesian tendency to view money as a kind of physical constraint.

The global capital market is a continuous auction process to allocate the world’s collective productive output at any given time.

Inflationary money: people have to place meaningless low-information randomized “bids” (buying spoos) to protect their assets from inflation. This crowds out high-information directed bids.

Deflationary money: people without an edge simply refrain from placing “bids” (by saving cash) and each unit of money that does get spent on bids has more power to influence the allocation of capital.

In the end, I expect it to come out in the wash. You might actually see more capital invested in stuff like R&D because you have less money blindly pumping up entrenched large-cap valuations through spoos. That depends on how good of a job fundamental analysis funds are doing in today’s world.