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It can make impossible the policy promoting an establishment such

Inflexibilities, forcing those who saves rigidity of the prices in the face of the falling

Demand to reconcile to the subsequent reduction of sales.

Underlying my reasonings, consists, finally, in treatment Phenomenon it the prices and wages. Keynes has led to its point of view The belief that amplifying it, i.e. inflexibility of wages is

Unbiased fact which should be accepted and which consequences it is possible to soften,

Simply adapting level of a monetary outlay for not which rate wage Payments.
Great Britain has ceased to correspond with the commodity prices of the world market.> I

I assert since then that such adaptation of monetary weight to it Some prices and, in particular, to it wages rates, should Strongly to increase sphere of distribution similar it and, in the long-term To prospect, completely to destroy market functioning. Error about "salutariness of moderate inflation" Any inflation is very dangerous just because many people, including many Economists, consider moderate inflation harmless and even useful. In

To the politician, however, there are some errors in relation to which it makes sense

To apply old it principiis obsta <"press in a germ" - Ovidy, "A medicine for love", 91>.

Surprisingly, but the fact: the self-accelerated mechanism of any organised inflation

Till now it is not understood even by some economists. The initial general The stimulus provided with growth of monetary weight, speaks, mainly, That the prices and, hence, profits appear above, than it was expected. All enterprises succeed, switching on even what should To go bankrupt. But it can proceed only until the continuous

The rise in prices remains for all unexpected. As soon as people will learn to consider

It, even continuous rise in prices with the same rate will not be more To give stimulus which it gave in the beginning. The monetary policy faces

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