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You might like "Less Than Zero: The Case for a Falling Price Level in a Growing Economy". Available for free online at http://www.iea.org.uk/sites/default/files/publications/files...

More or less the author argues that stable nominal spending, ie a constant level of nominal GDP, is pretty much ideal. And would lead to falling prices as you suggest.

If you replace constant level with 'target a level of nominal GDP that rises 4% every year' you have pretty mainstream position.

Inflation measures are indeed somewhat subject. Nominal GDP has less suggement calls.

(It's still useful to try and measure inflation. But perhaps it should not be a policy target.)



of course Mr. Selgin is influenced by Hayek, probably worth a read. thanks for sharing


If you are expecting pure Hayek, you are in for a ride:

George Selgin is a dyed-in-the-wool fan of fractional reserve banking. (And with good reason.)


ah, i mean it is still ok to try to read arguments of both sides ... it's not like Hayek or people like us know it all


I wouldn't call it 'both sides'. For one, there are more than two sides. For the other, George Sergin is very much some-kind-of Austrian. Perhaps the most interesting one.

See also eg https://www.alt-m.org/2015/07/29/there-was-no-place-like-can...


good point man




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