| "Holistic" view on monetary inflation?
" Although a change in the quantity of money may eventually affect all prices, it does not and cannot affect all prices in the same manner, to the same degree or at the same time. The holistic idea that it does is false and has serious consequences.[/quote]"
I was wondering if you could give a citation for any leading monetary theorist who actually holds this "Holistic" notion regarding the effects of an increase in the money supply. I, personally, have never come across a work on monetary theory that suggests or propounds what you refer to above as the "holistic" view. If the effects of an inflation of money were as perfect as the "holistic" notion implies, then society wouldn't need all these costly weighted-average price indexes to measure the effects of inflation, the change in a simple relative price would do. | 
07-19-2007, 04:07 AM
