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Article #1704

Re: Inflation

#1704
From: William B Dwinnell
Date: Sat, 23 Jan 1993 14:07
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Two points:

1. Curexxx "Curreny as currency" DOES indeed have value. The extremely
persistent myth that physical, tangible goods are the only things
which have the elusive (and quite nebulous) quality of "value" is
simply false.  It is true that money (currency), such as bills and 
coindxxx coins have little value if used for things other than
excvhxxx exchange (although they do have some value in this sense:
citizens of the Confederacy used to light fires with their paper
money!), but nothing has "value" outside of the contect ofxxxxxx
the context of a market.  To believe otherwise is to never have
abxx an answer to the Diamnd-Water Paradox.

2. To some extent, interest rates drive inflation. Yes, money which
bears interest has some of that value eroded by inflation, but the fact
is that interest is part of what makes iunfxxx inflation happen.
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References: <1993Jan21.211300.8065@athena.mit.edu> <1993Jan22.040507.5588@csi.uottawa.ca> <1993Jan23.041808.11656@athena.mit.edu>

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From: wbdst+@pitt.edu (William B Dwinnell)
Newsgroups: sci.econ
Subject: Re: Inflation
Message-ID: <2401@blue.cis.pitt.edu>
Date: 23 Jan 93 14:07:31 GMT
References: <1993Jan21.211300.8065@athena.mit.edu> <1993Jan22.040507.5588@csi.uottawa.ca> <1993Jan23.041808.11656@athena.mit.edu>
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