These effects depend on the whole complex of the market data involved. They also depend largely on the speed of the inflationary or deflationary movements and may be completely reversed with the progress of these movements. At any rate, a monetary expansion results in misinvestment of capital and overconsumption. It leaves the nation as a whole poorer, not richer. Continued inflation must finally end in the crack-up boom, the complete breakdown of the currency system.
Deflationary policy is costly for the treasury and unpopular with the masses.
But inflationary policy is a boon for the treasury and very popular with the ignorant. Database Programming, Site Design and Hosting IWDC, Inc.