WHY UNDER MONETARY FREEDOM INFLATION COULD BE STOPPED WITHOUT BRINGING ABOUT UNEMPLOYMENT --------------------------------------------- Unemployment and inflation do coexist and inflation causes much unemployment which would cease with it .2. Excessively inflated prices would fall to market prices and so promote sales and employment. 3. Less government spending would mean more private spending. 4. Prices and wages could be adjusted fast. If this is not done then this is not the effect of stopping inflation! 5. Price adjustments through gold-value clearing could take place already duringa continuing paper money inflation - leaving no adjustment problem. 6. While FALLING prices do indeed deter from buying and promote unemployment, FALLEN prices do the contrary. Under monetary freedom there would only be FALLEN prices.7. The un- or under-used productive capital investment would, under monetary freedom, be almost fully used and would thus ensure that there arises or remainsno unemployment. 8. Under monetary freedom there would also be no difficulty to mobilize fully the real working capital of any country: the goods and services ready for retail sale and to finance with them full employment - naturally at market wages and prices. 9. Monetary freedom would allow all desired exchanges to take place and would put Say's Law, that supply tends to create equivalent demand, into practice. No sales difficulties or unemployment would result. 10.Unemployment is an unnatural condition: Under monetary freedom it would no more occur than under barter. **************************** TEN WAYS HOW, INDEED, WRONG ATTEMPTS TO STOP INFLATION COULD LEAD TO UNEMPLOYMENT - UNDER CONTINUED MONETARY DESPOTISM. 1. Stopping the note printing presses suddenly while suppressing monetary freedom and upholding all price and wage restrictions. 2. Paying men not to work (unemployment "insurance"). 3. Deflationary withdrawal of notes from circulation - while free bankin...
