The Free Market Center

The Free Market Center

Inflation—Deflation

Inflation - Wheat Production Decreases

(Increasing Money Supply)

Wheat Production Decreases

Shoe Production Fixed 0.00%/Month
Wheat Production Decrease -1.50%/Month
Money Supply Increases 0.50%/Month

With the supply of money still increasing, we now reduce the production of wheat.

What happens?

Inflation-Deflation

Do we get more false signals because of money growth?

Direct Exchange

Inflation-Deflation

Direct exchange prices say you do.

Let's summarize what we've seen with an increasing money supply.

© 2010—2024 The Free Market Center
& James B. Berger. All rights reserved.
To contact Jim Berger, e-mail:

© 2010—2020 The Free Market Center & James B. Berger. All rights reserved.
To contact Jim Berger, e-mail: