[…] the quantity of money and changes in the money prices of goods and services. If the quantity of money is increased while other conditions remain the same, then the prices of all goods and services will rise. Of course they will not all rise at the same time nor, as was long assumed, in the same proportion as the increase in the quantity of money; but they will rise, and no measure of economic policy is capable of stopping this from happening.[7]
[1] Thomas E. Woods, Jr., October 8, 2009, “Warren Harding and the Forgotten Depression of 1920,” The Intercollegiate Review, Fall 2009 Issue, p. 23.
[2] Joint Economic Committee, June 18, 1982, “The Mellon and Kennedy Tax Cuts: A Review and Analysis,” (Washington, D.C., U.S Government Printing Office: Congress of the United States, 97th Congress, 2d Session), pp. 7-8. Also see Table 2 on p. 8.
[3] Joint Economic Committee, June 18, 1982, “The Mellon and Kennedy Tax Cuts: A Review and Analysis,” (Washington, D.C., U.S Government Printing Office: Congress of the United States, 97th Congress, 2d Session), p. 8.
[4] The Federal Reserve Act was an Act of Congress and signed into law by Woodrow Wilson on December 23, 1913.
[5] U.S. Congress, December 23, 1913, Federal Reserve Act [H.R. 7837: Public-No. 43-63D Congress], p. 1. [http://www.llsdc.org/attachments/files/105/FRA-LH-PL63-43.pdf]. Also see Clarence Walker Barron, 1914, The Federal Reserve Act, p. 151.
[6] Ludwig von Mises, Richard M. Ebeling, ed., 2012, “Inflation (Summer 1918),” Selected Writings of Ludwig von Mises, Vol 1, (Liberty Fund: Indianapolis, IN), pp. 210-211.
[7] Ludwig von Mises, Richard M. Ebeling, ed., 2012, “Monetary Devaluation and the National Budget (October 5, 1919),” Selected Writings of Ludwig von Mises, Vol 1, (Liberty Fund: Indianapolis, IN), p. 235, emphasis added.
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