It's possible that the fall in retail prices has been understated as retail prices began to fall as early as May with some New York stores cutting prices by as much as 20 per cent. But the inescapable fact is that, despite variations between industries, real wages did not fall overall because the drop in general prices was greater. Therefore the wage situation is explained by labour becoming more scarce relative to capital. This is why real wages did not, despite the depression, fall back to prewar levels even though commodity prices did. The economy had begun to recover by late 1921 with labour shortages appearing in the first half of 1923 as industrial production rose to new levels.
Money is never neutral.
This means that monetary expansion must misdirect production 1 . From this it follows that those lines of production upon which monetary expansion has had the greatest influence will have to make the greatest adjustments. Naturally wage rate flexibility will speed up these adjustments and thus stimulate economic recovery. This is the same Argy who is forever attacking the free market view that labour costs must be allowed to adjust to market conditions if permanent widespread unemployment is to be eliminated. A change of mind or a Freudian slip.