Article View: sci.econ
Article #1704Re: Inflation
From: William B Dwinnell
Date: Sat, 23 Jan 1993 14:07
Date: Sat, 23 Jan 1993 14:07
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1367 bytes
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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Path: arc1-ca.pugleaf.net!sparky!uunet!cs.utexas.edu!qt.cs.utexas.edu!yale.edu!nigel.msen.com!hela.iti.org!cs.widener.edu!dsinc!pitt.edu!wbdst 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> Sender: news+@pitt.edu Organization: University of Pittsburgh Lines: 17