We don’t have a fixed money supply in the modern system when banks can issue debt. Not even close. I suggest you read the Bank Of England’s paper called “Money Making in the Modern Economy” which I mentioned.
Yes, I’m quite familiar with that paper.
I’m not arguing that we have a fixed money supply. I was saying that if we were on a gold standard, in an alternative universe hypothetical, where the money supply was close to fixed, we would probably see worse price volatility.
Yes, I’m quite familiar with that paper.
I’m not arguing that we have a fixed money supply. I was saying that if we were on a gold standard, in an alternative universe hypothetical, where the money supply was close to fixed, we would probably see worse price volatility.