The Expansion of Credit in an Advancing Community
The question has been much discussed recently whether in an advancing community it is desirable that the general level of prices should remain constant or fall in proportion to the increase in the flow of goods. Grave difficulties beset any attempt to define the general level of prices, and these apply in connexion with either desideratum. When a fall of prices is considered, the weights used in the index number of prices should, of course, be the same as those used in defining the increase in the flow of goods.
KeywordsNatural Rate Business Section Business Community Real Capital Aggregate Income
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